A lot of people are concerned about the current Ethereum price trend. Ether’s value has dropped significantly these past few days. The entire cryptocurrency scene is in a bearish market right now, yet it seems Ethereum is getting the worst of it compared to other major altcoins. One thing people would like to know is why this is happening right now.
The Rise and Fall of Ethereum in 2017
There are many different reasons why Ethereum’s price is falling after its incredible run during the past few months. Any strong value increase will ultimately lead to a correction. Anyone who thinks Ethereum could escape such a correction is either delusional or has no idea how the cryptocurrency ecosystem -or any market, really- works. It is impossible to see a currency’s value go up by over 1,000% in just a few weeks without some degree of correction. Unfortunately for Ethereum users, that correction is rather severe.
Finding a proper explanation for this trend is not easy, as it appears most explanations are based on opinions. There are those who feel the uncertainty regarding Bitcoin is partially to blame for all of this as well. There is a certain truth to that. Bitcoin’s price will dictate the value of all other currencies, including Ethereum. Another reason may be the large investors – known as whales, who are looking to prey on weak minded traders and facilitate panic selling.
People who firmly believe in the underlying value of Ethereum have nothing to worry about. After all, the value of Ether is still higher compared to what it was just under a year ago. Anyone who bought ETH at around $400 will be rather disappointed. One golden rule in cryptocurrency is to never choose a pump and buy a currency at the peak. There are still a lot of people who never got that message, apparently.
There are also some concerns over the underlying Ethereum technology as well. The network has seen multiple instances of congestion. Ethereum’s blockchain is not immutable, as that trait was lost when the developers decided to roll back transactions on the blockchain to bail out The DAO’s investors.
If the technology is not safe from censorship, rollbacks, or alterations, it does not have much of an intrinsic value to many. It is rather amazing how many people overlook that fact these days. To some people, this may seem like something that would only happen once, but that is not necessarily the case. Another rollback could happen at any given time, should it ever be needed. A dangerous precedent has been set.
In the end, any price decline is often a correlation of many different factors. First and foremost, the momentum has to end at some point. Nothing can go up indefinitely, otherwise, everyone in cryptocurrency would become rich within the week. While that may sound like much fun, the ecosystem needs a constant flow of new investor money to make such a goal even remotely achievable. Right now, the money is heading the other direction.
There is no reason to think Ethereum cannot recover. When this will happen, and what will drive the increase is anyone’s guess. The value increase to $400 was quite a steep one, and a lot of “dumb money” found its way into cryptocurrency. It appears Ethereum will need Bitcoin to go up in value to have a fighting chance. The flippening will not happen anytime soon if this trend continues. Ethereum’s value is still on the high end of the scale, considering all of the issues this ecosystem is dealing with right now.
Typical 50% correction after an exponential runup. Stocks do this all the time, nothing different about Ethereum.
I dont agree, 95,000,000 ether is no much in a 7,000,000,000 people world.
I own 200 Ether, I dont own any BTC, the Chinese monopoly on mining (hardware and pools) turned me off Bitcoin, there is nothing decetralized there.
Etherium is about to go POS, I think a lot of people are scared of that and getting out of Ether
I get it, this has never been done and can fail.
however, if it can be done it will easily make 1 ETH = $1000, as usual it all boils down to leadership, talent and vision. Once in a generatin you get that person, they do achieve a tranformational global change, usualy they do it while quite young, Einstein came up with the theroy of relativity at the age of 26.
if and when ETH moves, it will pale the others including Bitcoin
“One golden rule in cryptocurrency is to never choose a pump and buy a currency at the peak.”
“The peak” can only be identified sometime after a correction has begun. Therefore, no investor can truly know they are buying at “the peak” at the time of their purchase.
So how does an investor lacking precognition or the ability to travel back in time adhere to this “golden rule”?
Etherium wasnt a stable buy for investors at the $400 mark, just look how quickly it jumped to get that high. It only got lower from there.
This is basic stock market tactics. Buy when its low, sell when its high
Man, i wish i had the money to invest that much into Ether. I agree, bitcoin is a bad bet, especially with the segwit block coming soon, which may split and crash the currency.
What is a “stable buy”?
“It only got lower from there ($400)”; amazing that you’re able to interpret historical data with such accuracy.
“Buy when its (sic) low, sell when its (sic) high”; how incredibly insightful, I never thought about it that way before…
Why would you buy etherium at the $400 mark? Etherium and Bitcoin have both been consistently crashing and booming the last couple months.
whut? 200 Ether???
Going POS will greatly increase Ether’s value. More people want to have a part of the limited stake of 95 million tokens. Look at DASH which is POS and what justifies it high price is POS. The less the miners POW involvement, the more better it is for the coin with POS.
Don’t buy a 4000% increase over a four month time frame. That never, ever works out. Look for the entire move to reverse over four months. ETH will revisit $10 and then grind higher over next decade as business cases prove out. This is simply the dotcom bubble redux.
I wasn’t suggesting that anyone should have bought ETH after a 4000% increase. I was just pointing out the flaw in this so called “golden rule”.
to say unequivocally to never buy the currency at its peak would have been bad advice for all the people who bought at $200 (the peak at that time) and rode it to $400. See, its not that simple.
Totally agree with that. I actually did buy it for 200 and sold it for a very good profit. I am currently buying everything back and more.
Ethereum is still a very small niche market in a world of 7 Billion people. I believe in its potential, and in the long run it will justify its current valuation.
It’s now more than 50%
Absolutely. We hear the mantra “Buy Low”! “Sell High” So when is Low the actual Low? When is High the Actual High? LOL! When ETH was $6 was that LOW or was it really the HIGH. It was both. It was HIGH then and in retrospect, it was LOW. ETH is at 200 now, is it LOW or is it HIGH? Who’s on first? So here’s the deal. Buy the darn thing when you feel like it. Never bet all of your money on one horse. If the ETH horse rises in value, you’re sitting pretty. If it falls flat on its face, oh welll… so’s life. You must decide your risk level and whether you want to HODL for the future or whether you want to PLAY the BUY/SELL GAME.
No. $200 per ETH