Why is ETH Crashing!? - The Simple Truth
The price of Ethereum has had a tough time over the past few months, not just in fiat terms but also relative to other cryptocurrencies like Dash and Dogecoin.
A lot of people are coming up with all of these theories around why the price has taken such a hit, but I think the explanation is much more simple.
DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.
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I’ve heard recently report about ethereum not having to be involved with the coin itself. In other words, smart contracts can possibly be separated from ETH. I hope that’s not the case, but it definitely sounds scary. Well..., I decided to go with the boat, even sinking boat, which I don’t believe it is in case of ETH. What I believe, is that it’s the sentiment and many short sellers are feeding on it as well as spreading bad nonsense news. Let’s just wait hit out. Being patient always pays out. These charts comparison are really similar, first I thought it’s the same coin. Not many people are buying at this moment, at least it doesn’t feel like it. And that’s exactly the perfect time to buy. I may consider to add ETH to my position as well.
As you say is the nature of this market but the icos has a direct effect in the eth price because the 90% of icos were a failure and the volume of eth on each ico was dumping and dumping the price, i expect a 500 eth in some months because the technology deserve it. Regards
The worst of what the ETH is coming down with its prices in the market is that many tokens based on ERC-20 are coming down and I get many projects thanks to those big sales of ETH.
Oh is my simple opinion.
My thoughts are similar to yours in that selling pressure has persisted given tokens selling their holdings for funding. I would also add that as the regulatory environment has completed shifted, it has now decreased demand for ETH as both regulation and the besr market have potential ICO participants on weak demand. In addition, the network continues to struggle with solving key issues like scaling which could detract any progress made from demand coming back into the market. However, there has been valued created in the Network which should soon give prices some support. In addition, there is talk of ETH futures market being developed which arguably could bring some demand into the market. Futures could also provide ICOs with the ability to hedge their funding which I imagine most would have liked given the bear market.
Much of the $12 billion USD that was raised went into ETH based dapps. Many of which will pay out, transact and ultimately require ETH. Plus, all the tokenized standards in ETH. For example, an every increasingly amount of Institutions tokenizing their fiat to ERC-20 standard. (The Gemini Dollar) The last time I checked were over 8 different token standards built on ETH. Some for baskets of assets, some for ID standard, others exchanges, ECT. As ETH runs millions of tokens the value and apps we become enormous.
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What gives hope with respect to Ethereum is the transition into PoS and sharding in the roadmap. It's going to be a bumpy road ahead for ETH but when the transition is complete, good times will return. The brand recognition of Ethereum is considerable.
You didn't mention what happened to Augur. Augur generated $700,000 and liquidated it immediately. Why? Because that money is supposed to be used for development, not gambling.
This didn't stop them from receiving scrutiny because if they would have held they would of had a billion dollars. Other ICO projects saw this and they gambled much more heavily with their funds than they otherwise would have. The chickens have come home to roost on that front.
But yeah Ethereum went x140, It's amazing that it's still x18 from that moment.
@louisthomas it is a bit troubling really and I really had no previous explanation as to the why but I do believe that the technology of Eth is still yo unique and superior to let them
I think you're right. ETH shot up so fast that it needs some price consolidation. But also I think people are getting tired of waiting for Ethereum's scaling solutions to be implemented. We're seeing the same impatience with Cardano and OmiseGo. It's been tough holding ETH, but hopefuly things will turn around soon.
Everything going down right now, but eth has taken a bigger hit this past week. Seems like a good time to start buying it.
I'm not really bullish on eth.