Once the second largest cryptocurrency in the world, with a market capitalization of over $ 130 billion, Ethereum died of a slow and painful death this year.
Changing the Ethereum ticker from "ETH" to "DETH" would not seem too inappropriate at this time.
The general purge of the cryptographic market, which began last Wednesday, saw more than 70 billion dollars leaving space in less than a week. Markets have plummeted by more than 30% in seven days, while a huge sell-off drops the prices of many digital currencies to levels never seen for over a year.
Bitcoin started the digital avalanche when it broke through a crucial psychological barrier to $ 6,000 last Wednesday. The automatic stop loss was activated on trading platforms all over the world and was followed by a massive landfill with a drop of 13% in a few hours.
The pain did not stop here, as another fall was coming and all the other crypto-currencies were going down with it.
Ethereum has suffered particularly badly during this digital route, slipping by 16% in the initial purge of last week and a further 25% since then. In total, Ethereum lost over 38% in seven days, an unprecedented slide from what was once dubbed "the future of global computing".
On Monday, the US Securities and Exchange Commission (SEC) determined that two initial coin offerings (ICO) CarrierEQ Inc and Paragon Coin Inc were in fact securities and, according to TechCrunch, the regulator fined both companies for $ 250,000 each .
The ruling triggered a wave of panic in the ICO sector, as further repressive measures are planned. Since most of Ico's organizations collected their funding in Ethereum, there was the fear of a strong sell-off, which seems to have already begun and is now accelerating.
Following the news, Ethereum dropped from its already low level of about $ 175 to a new depth for the year below $ 130. This marks the lowest point for Ether since before its initial rally in May 2017, making the current price a minimum of 18 months and a 90% decline from its all-time high in January, when ETH was trading at more than $ 1,400.
Ethereum still has hundreds of decentralized applications running on its network, so it has good reasons to overcome this storm. Ether's pain was the gain of XRP, since the Ripple token has now moved on to second in terms of market capitalization.
A week ago the Bitcoin was trading at more than $ 6,300 and the incident, which saw its market capitalization drop below $ 90 million for the first time in over a year, has been attributed to a battle for the control of a small hybrid cryptography called Bitcoin Cash after the "hard fork" currency – or divided into two – leaves uncertainty about who now owns it and controls it.
Whatever the reason or reasons behind the accident, what is certain is that Tuesday brought the lowest day to the cryptocurrency market this year. A number of analysts expect further falls for Bitcoin, which continues to hit new lows.
Bitcoin's value slipped on Monday under $ 5,000 for the first time since October 2017 and on Tuesday was traded close to $ 4,500. Some say that it may now be difficult to find support for $ 4,000 or even $ 3,000, even if what happens next is all but certain.