Ethereum Price At 2018 Rock Bottom; What Now?
Ethereum (ETH), one of the most regarded cryptocurrencies in the market, has reached new lows in the 2018 calendar year. The last time ETH was at a price level below $215 was in August 2017.
Ethereum Tests New Price Lows
On Wednesday, the value of Ethereum declined to $211 dollars. This had not happened since July 2017. Along with ETH, other coins saw year-lows as well: Cardano (ADA), for instance.
In the last day or two, the market has rebounded. The total market capitalization is now $204 billion dollars. Bitcoin (BTC), the most important virtual currency in the market is being traded around $6,480 dollars.
Ethereum is one of the most affected virtual currencies after this market drop. Additionally, ETH lost most of the gains it had during last years’ bull run. From its all-time high, the situation looks even worse. In January, the famous cryptocurrency registered a record high of $1,350 dollars. Since that moment, ETH lost 84%.
What is creating this situation in Ethereum? One of the main reasons is related to the fact that Initial Coin Offerings (ICOs) and other projects are selling their tokens to invest in personnel and development. While the market waits for positive news (like perhaps a futures market), the Ethereum team has maintained its focus on milestones and not trading price.
At the end of the last year and the beginning of this one, the number of ICOs substantially increased. After that, projects need to sell their tokens and have dollars to pay salaries and other responsibilities. And there hasn’t been the rush of ICOs this year like there was last, so new money doesn’t appear to be flowing into the market.
Previously, we wrote about Goldman Sachs and its decision to suspend a cryptocurrency trading desk. This situation created a massive sell-off that produced the price of Bitcoin to fall hard. Indeed, BTC fell $900 dollars in just a few hours.
Before this situation, the market had a capitalization of almost $240 billion dollars. Back in January, this number was close to $800 billion dollars. Several individuals were already talking about $1 trillion dollars market cap.
The market now seems to be closer to a free fall, and ETH enthusiasts are waiting for good news to substantiate the real value of the token.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.