Why Ethereum Rose 3% Today, Despite Key Headwinds
Among the most bulletproof cryptocurrencies in the market, and one I've touted as a long-term winner many times in the past, Ethereum (CRYPTO: ETH) is indeed facing a unique set of headwinds, at least lately. Despite these headwinds, Ethereum is currently up 3.2% over the past 24 hours, as of 5:30 p.m. ET.
Similar to other mega-cap crypto projects, Ethereum's valuation can fluctuate significantly on a daily basis. Macro and market forces can often be the key impetus for these swings, with plenty of leverage in the derivatives market and speculative capital driving even greater volatility than what investors in other assets (like equities) are used to.
So, when tech stocks sneeze, digital assets such as Ethereum can catch pneumonia. That's part of the bearish thesis that's been building recently. Yet, several crypto experts have also pointed to other negative catalysts for Ethereum, such as developers looking toward purpose-built networks for their specific applications. This is because Ethereum's stable and secure network, with relatively high costs, has created network effects for other up-and-coming, developer-friendly networks.
Source Fool.com
