Ethereum (ETH) Volatility Nears All-Time Low

November 14, 2019

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Ethereum (ETH) is closing in on the smallest volatility of all times, show recent trading data. For the past few months, ETH has traded in a tight range, with a relatively predictable price.

ETH Prices Stabilize Below $200

Based on Skew analysis, the price of ETH has budged little, with the volatility index at 1.73%.

Ether volatility – getting close to all time lows. Moved 1.73% on average the last 10 days. pic.twitter.com/uSdpwBAkRf

— skew (@skewdotcom) November 14, 2019

ETH moved between $180 and $190 in the past weeks. On Thursday, the asset traded at $186.69. The ETH price has barely moved in the past week, despite the relatively large sway in BTC prices. Ethereum is showing signs of decoupling from BTC, as the coin is no longer facing sell-offs, or the bet between BTC and ETH positions.

One of the reasons for ETH stability are the higher trading volumes, currently above $7.7 billion. The share of ETH in terms of overall crypto trading is also rather stable, close to 12% of all activity over the past few months. And while Ethereum is no longer looking ready to attack or “flippen” BTC, it has become an important fixture in the crypto market.

Tether Continues to Boost Ethereum Trading

ETH receives more than $737 million inflows from Tether (USDT), up from around $500 million in the past days. The inflows from the BTC market line up with $462 million. One of the reasons for the stability of ETH is that the new form of ERC-20 USDT is using the Ethereum network, and is among the most active tokens. The share of USDT pairings in the ETH market has crept up to 60%, allowing a separate process of price discovery.

The value of ETH fluctuated wildly during the 2017 bull market, as well as during the ICO craze in 2018. At that time, the prediction for ETH was to remain a utility coin with a value around $400. But Ethereum settled a little under $200, boosted by its new use case in decentralized finance.

At the same time, the Bitcoin volatility index has settled just below 4%, and the leading coin is also stabilizing its price.

The Ethereum network is also running in its usual state, with mining set to continue for more than a year after developers are set to delay the mining ice age once again. The debate about ETH 2.0 for now has not hurt the asset’s market price.

What do you think about the price action of ETH? Share your thoughts in the comments section below!

Images via Shutterstock, Twitter @skewdotcom

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