Like Bitcoin, the value of Ethereum has dropped significantly in recent days. The main reason for this drastic fall is the mysterious movement of 380,000 ETH from a Genesis block to new portfolio addresses.
The Ethereum Genesis block was launched four years ago, at the same time as the blockchain protocol. During this time, the network still faces the challenge of scalability. Nevertheless, the Ethereum blockchain has gained popularity for its support for token formulation through which startups can raise capital.
The 380,000 ETH in question was moved into two batches of 228,000 ETH and 152,000 ETHs respectively. Since then, the amount has been moved from these two accounts. The recipient's account currently has 455,000 ETH, equivalent to $ 58 million at prevailing exchange rates.
As expected, this suspicious activity negatively affected the reputation of Ethereum in the cryptic community. Although the general markets of the crypt have collapsed in the last week, this incident also contributed to a decrease in the value of Ethereum. Currently, ETH is valued at $ 113, a figure that is well below its previous range of around $ 210.
The fall in prices has caused a massive sale of ETH by its owners. In fact, the increase in sales activity meant that ETH transactions exceeded $ 3 billion, a record level.
For now, the future of Ethereum appears gloomy. In fact, some experts have predicted that popular cryptocurrency could soon fall below the $ 100 threshold. This is because most of its tokens are considered unrecorded securities by supervisors such as the SEC. Furthermore, strict rules have been imposed on ICOs, the main use case of the Ethereum protocol.
Finally, the fall of Ethereum is a blow to its supporters who predicted that the cryptocurrency would hit $ 5,000 in valuation in the near future.