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In recent months, Ethereum investors have had to fight bears almost every time, as the price of the asset has recently set a new low since the beginning of the year following strong sales pressure. However, some fear that the worst is yet to come.
Ethereum falls below $ 200 for the first time since August 2017
As reported by Ethereum World News on several occasions, the cryptocurrency market has not had the best week, with the collective evaluation of all cryptographic activities that they are reduced by more than 20% within a few days. While the altcoins had the worst, there was a specific cryptocurrency that stood out (not in a good way) among the nearly 2000 cryptographic assets currently in existence.
To the surprise of some, this resource was Ethereum, which decreased by about 33% in the last week, while Bitcoin recorded "only" a loss of 11-12%. At one point on Saturday, Ethereum had a value of $ 185 a piece, which was the first time that the price of ETH was less than $ 200 from August last year. At the time of writing, however, Ethereum has since recovered up to $ 202, but is still down by 1.5% in the last 24 hours.
The ETH could be relatively good today, but it is still the worst cryptographic asset in the top 20 (as per CoinMarketCap). According to a forecast by Bloomberg's strategist on intelligence Mike McGlone, Ether may fall further to a "$ 155" support target, due to increasing competition from the contract-focused DApp / smart blockchains, the overall volatility of the market and a mature sector. [19659002] Why does ETH work so badly?
The squalid performance of Ethereum has led some to wonder what is causing such a drastic sale. At the time of writing, there are currently two primary theories that try to explain why the price of Ether is collapsing.
First, the introduction of a new perpetual BitMEX ETH exchange contract, which allowed traders to shorten the price of Eth with up to 100 times leverage similar to the BitMEX XBT contract (BTC). As pointed out by Cryptoeazy on Twitter, from the arrival of the perpetual contract at the beginning of August, the price of Ether has decreased by 57%.
$ ETH now -57% from the launch on Bitmex in just over 1 month. pic.twitter.com/jfW4TCYcEE
– ₿-Eazy 💥 (@cryptoeazy) 9 September 2018
Although this has not been confirmed, this statistic has led some to speculate that the arrival of the contract allowed pessimistic traders to weigh the price of ETH. The Twitter user CryptoBat wrote: "Bitmex is the worst thing that happened to ETH."
Second, but not least, is the ICO sell-off factor, with many stating that projects have started to liquidate their war crates, which are often full of Ether, in fiat, leading to the current market crash, not just ETH. According to data from Santiment, the leading cryptographic analysis provider, projects have spent more than 100,000 ETHs in the last week, probably selling their holdings on the stock market massively, naturally leading to a market decline like the one seen this week.
According to the database of @santimentfeed the ICOs for which their Ethereum portfolios are known have a visible balance of ETH 3.3 million or $ 900 million at current prices. ETH 135K were transferred / spent in the last 30 days (around 4%). #ICO
– Alex Krüger 🇦🇷 (@Crypto_Macro) 24 August 2018
Photo by Florian van Duyn on Unsplash
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