Ether prices rose sharply today, recovering after falling to their lowest point of the year in the last few days. The digital currency, which is the world's second-largest by market value, reached $205.87 at 9:49 UTC (5:49 a.m. Eastern Time), according to CoinMarketCap.
At this point, it was up roughly 21% from $170.26, the 2018 low it hit yesterday, additional CoinMarketCap figures show.
The cryptocurrency has enjoyed this notable rebound after suffering sharp declines, which caused the digital asset to drop close to 90% from its all-time high.
[Ed. note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Natural Bounce Back
When explaining ether's recent bounce, analysts described it as a natural market reaction.
" Looks like yesterday's losses have been completely erased," said Mati Greenspan, senior market analyst for social trading platform eToro .
"The market is clearly rejecting the sub $200 levels," he added.
The fact that ether prices fell below $200 in the first place could have been a "false breakout," said Greenspan.
Jon Pearlstone, publisher of the newsletter CryptoPatterns , also spoke to the digital currency's recovery.
" ETH is seeing a bounce following very high volume sell of against both the US Dollar and Bitcoin," he stated.
"This pattern could be 'capitulation' which has the potential to signal a meaningful bottom and possibly a new bull trend."
The cryptocurrency's trend is uncertain, emphasized Pearlstone.
While it surpassed " first resistance at the $205 level," "the real test for an ETH Bull move comes at the $300 level."
" If ETH can't hodl the $200 level, expect a the bearish trend to continue with ETH likely to test $150. After that prices under $100 come into play."
Disclosure: I own some bitcoin, bitcoin cash and ether....