Ethereum is back. From the distant margins of darkness, the price of the world's number one and bitcoin's main competitor seems to return to glory slowly but steadily.
Bitcoin, Bitcoin, Bitcoin … Ethereum?
Everyone talks about what a bitter bitcoin period has had in the last year. The currency, as we all know, was pushing $ 20,000 at the end of December 2017 before the new year's arrival. The currency started to fall faster than anyone could have predicted, and now it is in the $ 6,000 range – nearly $ 14,000 less than where it was only nine months ago.
But where is Ethereum in all this mess? Being the second cryptocurrency in the world by market capitalization, Ethereum holds a rather prominent position in the cryptocurrency space. Many believe that its technology and its intelligent capabilities make it superior to bitcoin and think that its future has been barely exploited. For some, Ethereum is the creator or the destroyer of the cryptocurrency arena, and they believe it has a lot to offer to those who have remained loyal.
Dark Days for the second largest coin
But fame has also become ruined with serious falls in price and financial descent. Last year, during the period when Bitcoin was undergoing its enormous wave motion, Ethereum was cutting and incurring in price jumps comparable to those of bitcoin. No, Ethereum never reached $ 20,000 because it was a smaller currency, but its percentages and value have increased considerably. When the month of December was over, an ether coin was trading around $ 1400, and the market seemed ready for solid growth.
Read: Ethereum Beginners Guide: Definitive Guide to This Decentralized IT Platform
But like the bitcoin, the luck of Ethereum would not last. The currency began to falter as soon as it arrived January, and soon the currency had dropped $ 400, then $ 600, then $ 900. In a short time, the progress made in the last year was nil and at the time of the press, Ethereum has only traded for around $ 207, and this is an improvement over last week. Overall, it is estimated that Ethereum has lost about 85% of its value since last December. Bitcoin, on the other hand, lost only 70 percent.
Maybe things are changing
That said, how can it be said that Ethereum is "in vogue" and potentially returning from a dark place? First of all, the price has increased by around 14 percent – 13.40 percent, to be precise just a few days ago. The analysts were sure it was only a matter of time before $ 190 or less became a bad reality for the major bitcoin competitor, and for now it seems that reality will have to wait.
Interestingly, the bitcoin itself added more than three percent to its total value and is now witnessing commercial prices above $ 6,500. While it's hard not to get excited – it's about $ 300 more than where it was yesterday – remember that the currency (along with most forms of cryptography) remains volatile and vulnerable to external influence, and the price it could go down anytime as we saw in August and July of this year.
Ethereum is the victim of a sell-off
Many start-ups and new business ventures were heavily based on ether tokens through initial token offerings (ICOs). These companies offered new tokens to investors that could be used to purchase their services and / or products, but these tokens could only be purchased with ether coins. Now that most of these ICOs are complete, companies are starting to cash out, which can only mean a massive sell-off of the currency. This has potentially worked to keep the price steadily declining.
While bitcoin has enjoyed a successful comeback and has experienced short but noticeable bull runs in the last few months, Ethereum has apparently remained in the sewer and has continued to lose value, which makes it so significant today for the currency.