Ethereum and Bitcoin struggle to hold onto gains
Ethereum and Bitcoin hovered above breakeven on Thursday, easing from session highs as investors seemed reluctant to initiate large position amid calls from analysts that cryptocurrencies face a period of correction before new peaks can be established.
On the U.S.-based GDAX exchange, BTC/USD rose to $2,597.4, up $7.4 or 0.25%, well below its peak of $3,000 achieved in June.
In a note to clients, Sheba Jafari, the head of technical strategy at Goldman Sachs (NYSE:GS), wrote that Bitcoin faces a period of correction that "shouldn't go much further than 1,857", but he added that “there’s potential to extend as far as 3,915”.
Ethereum mirrored Bitcoin’s move lower, easing from session highs of $275, to $264.45, up 0.94%.
In the second half of 2017, the price of both Bitcoin and Ethereum is likely to be driven by initial coin offerings (ICOs), which can be thought of as a cross between crowdfunding and an initial public offering.