Miners and ICO projects are killing Ethereum


  • The ETH / USD is falling like a stone, down more than 13% on a daily basis.
  • ICO miners and projects sell coins to cover expenses.

Ethereum changes hands to $ 146.14, which is the lowest level since July 2017. The currency with the market value of $ 15 billion has fallen from second place in the cryptocurrency rating as a result of rising bearish sentiments. ETH / USD lost 16% on Monday and could increase the drop on Tuesday, unless new buyers join the market to buy more coins while they are cheap.

Ethereum lost almost a third of its value in one per week, while a hash rate in the Ethereum network dropped to 236 TH / s, which is the lowest level since February. The current situation of the hash rate means that the miners are suffering big losses as they have to pay for electricity, equipment and rent among the diminishing profits of each extracted coin. This could lead to unmet market consequences, as miners have to sell their coins to cover expenses.

ICO projects could also drag the price as companies risk collecting funds raised during crowdfunding.

A report that comes at the behest of Diar, a daily encrypted newsletter, has also found strong bearish catalysts that point to an extended sales action in the Ethereum market. The study based its bearish forecast on the possibility that ICO's main projects can liquidate their holdings in ETH.

According to Larry Cermak of Diar, at current prices, some projects would become unprofitable and would continue to sell ETH to cover expenses.

"Obviously, many ICO companies will continue to sell ETH to cover operational expenses and fund their businesses," Cermak said in a tweet. "It's important to realize that most of these projects do not generate revenue, and most likely never will," he said.

Technical framework of Ethereum

At the intraday level, a sustainable move above $ 170.00 is needed to mitigate the bearish asset. However, this seems very unlikely in current market conditions as the decline is gaining ground. Although in terms of support levels lower than the current price, ETH / USD could easily reach $ 130 once the $ 140 handle was eliminated. The daily RSI remains flat in the oversold territory.

ETH / USD, the daily chart

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