The last couple of days has been good for Ethereum (ETH) and on Thursday, the daily trading volume for the ether token hit a 12-month high to the delight of investors.
According to Bitfinex data, the second world largest digital currency witnessed a 24-hour trading volume of 850,000 ETH- the highest volume witnessed since September 15. To this end, the weekly volume for the ether token is currently at $2.9 million dollars and is said to be the highest since mid- December.
Also, 24 hour volume for ETH currently stands at $2.33 billion, the highest level witnessed since July 18.
ETH daily trading volume on Bitfinex
According to experts, the recent rise in trading volumes for ether token is an indication that investors took the opportunity and bought the recent dip in price of ETH below $200. Hence, the sharp recovery from a historic 13 month low of $167 to levels above $200 looks sustainable in the coming days.
More so, the sharp increase in trading volumes of ETH also validates the bearish to bullish trend change showed by technical indicators.
As at press time, ETH was trading slightly at $203 with a clocked high of $224.
Interestingly, ETH created a hammer candle on Wednesday as the second largest cryptocurrency recovered from a 13 month low, posting a positive follow through on Thursday, confirming a bullish hammer and bullish relative strength index (RSI) divergence.
More so, stochastic oscillator is gradually moving away from over sold conditions having crossed bullish two days ago.
Carefully looking at the current market situation, you’ll notice that the sell off from July highs above $500 has made a potential low at $167, signaling that bulls have likely regained control.
Nevertheless, investors need to be cautious as the bearish 10-day moving average (MA) may put a hold technical recovery.
A look at the weekly chart clearly shows that the volume of Ethereum is at the highest level since December. At that time, the crypto market was enjoying rise in volumes thanks bitcoin’s rise to a record high of $20,000.
Furthermore, the weekly chart indicates how prices have skyrocketed both in terms of bearish and bullish growing total volume.
Undeniably, the total volume if ETH for the majority of the year has remained relatively consistent with only a couple of weeks in March and July witnessing volumes lower than normal levels.