In the last 6 months or so, ETH has been in a bear market, falling from a peak of $ 800 to less than $ 200 in a few months. This unfortunate turn of events has left many traders and analysts wondering where the true Ethereum fund is located. However, the crypt has improved its position in recent days to reach a value of just under $ 230.
Why The Slump?
First of all, it is nice to understand that in the cryptic world an influx of tokens was released in the market could upset the market value of the particular cryptocurrency unfavorably. In the case of Ethereum (ETH), the fall in prices was largely due to the fact that large ICOs have poured their holdings into the market to finance their business ventures.
The most impactful event occurred in May when 100,000 ETHs worth $ 60 million (each valued at $ 600 at the time) were thrown into the market, causing a sharp decline of 15% within a few weeks . In August, the value of ETH had declined to just $ 300, and another flood of 110,000 ETHs in mid-August sparked another bearish sentiment that led to further price declines.
The second reason for Ethereum's pricing problems stems from network problems in controlling its ecology and updating its updates to perfection. For example, the network reported reduced processing speed for LongHash data, resulting in a workload of unconfirmed transactions of 80,000. This is not a good thing for a cryptocurrency that sits at the top of the rankings as the second largest and most popular on the market.
What could happen?
In addition to these problems, ETH has faced tough competition from people like EOS that has 4 Dapps compared to Ethereum which has only 2. ETH has recorded some peaks and falls in recent months, with each peak price followed by a sharp decline. That dynamic suggests that if cryptocurrency were not able to establish a stable resistance level early, things might not work so well for its market value as it would continue to fall.
However, although there may be many market dynamics that could trigger a bearish move for ETH, it is estimated that the value of the crypto does not fall below $ 140 before it jumps again. This is because it is the value at which the miners would be in balance, and anything below that price would not be worth it.
Interestingly, if the value were to fall below $ 140 and make it unprofitable for miners, mining would stop, and the supply of ETH token would be reduced. This would create more demand for Ethereum and eventually cause a bullish run. This means that even if ETH were to fall, it would not really die. A bear market could also be an invitation for a bull run.