A lotsbestemming of people are worried about the current Ethereum price trend. Ether’s value has dropped significantly thesis past few days. The entire cryptocurrency toneel is ter 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 te 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 unlikely to see a currency’s value go up by overheen 1,000% te just a few weeks without some degree of correction. Unluckily for Ethereum users, that correction is rather severe.
Finding a zindelijk explanation for this trend is not effortless, spil it emerges most explanations are based on opinions. There are those who feel the uncertainty regarding Bitcoin is partially to blame for all of this spil 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 spil whales, who are looking to prey on feeble minded traders and facilitate fright selling.
People who rigidly believe ter the underlying value of Ethereum have nothing to worry about. After all, the value of Ether is still higher compared to what it wasgoed just under a year ago. Anyone who bought ETH at around $400 will be rather disappointed. One golden rule te cryptocurrency is to never choose a pump and buy a currency at the peak. There are still a loterijlot of people who never got that message, evidently.
There are also some concerns overheen the underlying Ethereum technology spil well. The network has seen numerous instances of congestion. Ethereum’s blockchain is not immutable, spil that trait wasgoed lost when the developers determined 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 thesis days. To some people, this may seem like something that would only toebijten once, but that is not necessarily the case. Another rollback could toebijten at any given time, should it everzwijn be needed. A dangerous precedent has bot set.
Ter the end, any price decline is often a correlation of many different factors. Very first and foremost, the momentum has to end at some point. Nothing can go up indefinitely, otherwise, everyone te cryptocurrency would become rich within the week. While that may sound like much joy, the ecosystem needs a onveranderlijk flow of fresh investor money to make such a purpose even remotely achievable. Right now, the money is heading the other direction.
There is no reason to think Ethereum cannot recover. When this will toebijten, and what will drive the increase is anyone’s guess. The value increase to $400 wasgoed fairly a steep one, and a lotsbestemming of “dumb money” found its way into cryptocurrency. It emerges Ethereum will need Bitcoin to go up ter value to have a fighting chance. The flippening will not toebijten anytime soon if this trend proceeds. Ethereum’s value is still on the high end of the scale, considering all of the issues this ecosystem is dealing with right now.