Ethereum (ETH) slowly unraveled from the unprecedented peak at above $1,300. In the short term, predictions see the asset falling to below $400, levels unseen since the summer of 2017. ETH has lost more than 24% in the past days, down to $430.01, on a generally bearish attitude. Soon after that, ETH continued to sink fast, marking lows at around $418.
Part of the loss for ETH is related to the sinking of Bitcoin prices below $8,000 once again. The losses of ETH against BTC are half as low, around 12%.
Ethereum and ICOs
The fall of ETH has slashed the potential wealth of ICO-backed startups by a third since the peak, at least in terms of market prices. However, some believe that selling the ETH on the open market would mean a further sinking of the price.
At this stage, some ICOs may be starting to sell their ETH, and the markets are on the lookout in case larger amounts of coins hit the exchanges. It is possible to sell crypto coins in other ways, not affecting the market price. But at this point, ICO projects are de facto “whales” who could manipulate the price of Ethereum.
A recently released open-source tool monitors the wallets of prominent ICOs. For now, it is EOS that immediately moved tokens:
Ethereum has seen serious drops in the past, whether due to trading mistakes, relatively low volumes, or a general market shakedown. The market price has easily slid from around $400 to even below $200 for a short time, before going up again. ETH is also once again losing positions against Bitcoin, and in terms of market capitalization has sank even below the weight of altcoins and tokens.
But beyond the market hype, Ethereum itself is having some growing pains, mostly in terms of governance and deciding on the future of the network. In a few months, ETH is set to transform into a staking coin, and accumulating ETH at low prices before eventually locking a lot of coins may see a striking difference in the future.
The popularity of ETH does not hinge on its usage as a payment option. Without the appearance of new apps, ETH may remain a niche coin, too complicated to understand. Hence the price of ETH may depend mostly on speculative trading, and experience deep shakedowns to low levels.
This article appeared first on Cryptovest
