Ethereum price performance is truly impressive. We are not even talking about the 43% increase in 7 days, we are actually referring to how it held and even made new all-time highs at 1231.99 USD today amid the “concerning” news shared by Financial media.
The most notable one came from South Korea and how the local authorities will run a flash probe to ensure that the virtual accounts that the six lenders have provided to cryptocurrency exchanges were compliant with the government requirement. We actually have covered the new regulations and our take on the move in details in our previous article: Ethereum Investors to Watch the Japan South Korean Blockchain Collaboration.
As for the impact on Ethereum price and cryptocurrencies in general, these regulation discussions might cause investors to be cautious till there is a clear direction. Therefore, we might see a short term impact on transactions volume which will translate into a price correction.
The retrace is still not ruled out and we provided important support and resistance levels for January in our recent outlook for Ethereum price in January. However, we believe it is very important to note that the way Ethereum price held, even after the South Korean news and how Bittrex Stopped Creating New Ethereum Deposit Addresses is quite notable considering how Crypto markets usually react to such announcements.
There is one meaning that we can derive and that is Ethereum is seriously maturing as a cryptocurrency. The other notable thing is that South Korea, be it through regulations or incentives, is really doing what it takes to ensure Cryptocurrency related transactions are running smoothly and do not lead to a collapse due to an AML scandal for instance.
This market remains an interesting one to watch not only because of the significant volume but also the way they are handling the whole experience for cryptocurrency adopters. Meanwhile, South Koreans are buying Ethereum and contributed to pushing the price significantly higher.
One thing that we are watching closely as well is Ethereum transactions, how they are continuously breaking records but also how they are getting slower and more expensive. Scalability remains our main concern and we are looking forward to the next hard fork designed to increase Ethereum’s scalability.