The price is a main factor for the traders to doing his trade. The price will be give a clue if the coin have big demand. The price of coin is really important for all of the community.
Traders care only about one thing - volatility. It doesn't matter for them if the price sits at the $500 level, or at the $1000 level, they just want to trade the price swings, regardless of what direction they might go. If the price sits at high levels, and it's just moving within a very small range, it won't do anything for traders, unless they are doing high frequency trading with next to zero fees (which depends on the platform they use). Otherwise it's not worth the effort.