Ethereum Extends Gains to Rise 8 Percent; Bitcoin Firms

Ethereum extended gains to rise more than 8 percent on Monday to $2,587 (roughly Rs. 1.88 lakhs) but remained 40 percent below a record high of above $4,300 (roughly Rs. 3.12 lakhs) hit earlier this month.

At 11:53 GMT (5:23pm IST), it was trading up 7.4 percent at $2,565.69 (roughly Rs. 1.8 lakhs).

Larger rival Bitcoin (price in India) also gained in its wake with the world's biggest and best-known cryptocurrency rising 3.7 percent to $36,977 (roughly Rs. 26.8 lakhs) in quiet trading with London and US markets shut for holidays.

Bitcoin has been less volatile in recent days but is down by more than 35 percent this month, weighed by growing regulatory pressures on the sector.

Latest positioning data for the week ended May 25 confirmed the trend with net short positions nearly doubling from the previous week, which was the smallest net short since late March last year.

In the latest salvo against the cryptocurrency, Bank of Japan Governor Haruhiko Kuroda said much of the trading was speculative. His remarks followed China's recent efforts to crack down on mining activities.

It is currently trading at levels last seen in February and at roughly half its peak value of $65,000 (roughly Rs. 47.2 lakhs) seen in April.

© Thomson Reuters 2021