However, Ethereum bulls may have regained some momentum as the price of ETH has bounced more than 25% off lows on what appears to be one of the highest volume days of trading this year.
While the total volume hit the highest point since July 18, the volume on leading crypto exchange Bitfinex hit its highest point in more than 52 weeks. Bitfinex currently represents 10% of the total daily trading volume for ether and the recent activity indicates that bulls on the platform are beginning to take back some of the momentum.
While the injection of volume on ETH’s daily chart could indicate a bullish reversal pattern, it is important to note that shorts have yet to be phased by the latest price action. Currently, the short-interest sits near all-time highs as many blockchain projects have been dumping the ETH they raised during ICOs.
The spike in volume came the same day that Michael Novogratz, the CEO of cryptocurrency focused merchant bank Galaxy Digital LP (GLXY), called a market bottom following a full-retrace in the Bloomberg Galaxy Crypto Index (BGCI), a 10-constituent cryptocurrency index that includes Bitcoin, Ethereum, Monero, Ripple and Zcash.
More: Bitfinex ETH Chart
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.