The ethereum price clawed its way back to $300 on Wednesday as the wider cryptocurrency market experienced a double-digit recovery.
Ethereum suffered a colossal sell-off during the early part of the week, dipping as low as $249 on Monday and leading many to wonder whether the second-largest cryptocurrency’s status as a launchpad for initial coin offerings (ICOs) made it particularly vulnerable to the effects of the bear market.
However, ETH roared back to life on Wednesday, rising an eye-popping 17 percent to lead the surging large-cap index. By 16:00 UTC, the ethereum price had cracked the $300 level, and it continued to trade at that mark when this article was written at 17:30 UTC.
ETH/USD | Bitfinex
There does not appear to have been a specific trigger to the recovery, other than the fact that the market was perhaps oversold earlier in the week. That said, the rally correlated with the issuance of $120 million worth of new tether tokens (USDT) between Tuesday and Wednesday, suggesting that new capital is entering the market.
However, as CCN reported, Arthur Hayes, CEO of cryptocurrency derivatives exchange BitMEX, said that he believes the ethereum price will ultimately plunge below the $100 mark before the bear market is over.