Ethereum is, just like Bitcoin, a cryptocurrency that is also blockchain-based but unlike its counterpart and rival Bitcoin, it is generated by the Ethereum platform. Ethereum, released only in 2015 has fast become the second market leader behind only Bitcoin, and is traded against Bitcoin also.
Recently the main topic of conversation has been the Ethereum price drop and different people have come up with explanations on why does the Ethereum price fall.
Rise of Ethereum
Since its release in July of 2015, Ethereum has seen a steady increase as it rose to trade at $1 by January 2016. But this changed as the biggest crowdfunded project in history saw Ethereum rack up $150 million into the project, calling it the Decentralized Autonomous-Organization (DAO). This gave Ethereum the much needed boost as it rose to a record high at the time of $14.80. Fast forward to March 2017, Ethereum which once traded at $1 was now worth $52.31, with the price still increasing.
2017 was the year of Ethereum. This was the booming year as it entered the year on a lowly double digit but midyear, July, Ethereum was trading at $400, which is such an enourmous increase, thanks to the ICOs created by the Ethereum team which gave it a major boast. Ethereum ended the year with a wobbling $850. With all this rise one would hope Ethereum would go on to reach the heights of Bitcoin, clocking $20,000 but 2018 was not a good year for cyrptocurrencies.
Both Ethereum and Bitcoin fell drastically, and this was called the end of cryptocurrencies but technology can only be halted so far. The fall of the crytocurrencies was speculated and many reasons and rumors where mentioned and since Bitcoin is the leader in the market of the cryptos, a fall of Bitcoin drags down all the other cryptocurrencies, Ethereum included
Why the Price Fall?
The cryptocurency has been hit with several backlashes the massive blow being Bitfinex being subpoenaed by the courts which prompted massive sell off as no one knew the outcome. Bitfinex is a cryptocurrencyexchange trading and currency-storage platform.Cases like this are common in the Asian market with countries like China, Korea and India being very vocal about the unwelcoming of the cryptocurrencies in general, including Ethereum.
The main reason why the price of Ethereum fell can be credited to that of Government intervention. The US Securities and Exchange Commission ordering all cryto trading platforms and exchanges to be registered with the federal agency so that they can be tracked and regulated, and also the Japanese Financial Services Agency suspending the exchange of cryptocurrencies. This is a major blow to the cryptocurrency world, which Ethereum belongs in as the sole purpose of the crptocurrencies is to defect from government control over money and trading money, with no fees and taxes. This might explain the Ethereum price drop.
The Indian Finance Minister went on record to clearly state the government does not approve of the existence or use of cryptocurrencies, and that it will do everything in its power to ensure all crypto-assets arre eliminated.This clearly shows how the governments across the different continents mainly Asia do not support the use of cryptocurrency as this limits their control, and every government is power hungry and controlling the money is all that matters
The Ethereum price drop can also be explained by talking about Bitcoin. Bitcoin is the flagship in the cryptocurrency world, majority of the cryptocurrencies including Ethereum trade against it. Recently Bitcoin has lost almost $2000 in value, which is a 22.9% drop in value, this is a much bigger fall than that of Ethereum but it affects it and Bitcoin constantly dragging all other cryptocurrencies down with it. With the ETH/BTC (Ethereum/Bitcoin) also on the decline, cryptocurrencyexperts say they donot see an improvement from the Ethereum price drop in sight unless Ethereum finds a way to gain momentum over Bitcoin.
Cryptocurrency is a revolutionary way of spending and making money in this digital age we live in.
Cryptos such as the Ethereum took the market by storm, peaking to $1500, but the recent Ethereum price drop comes at a time that such cryptocurrencies are not being welcomed into the market and some countries like China want to completely ban the use of Cryptocurrenies such as Ethereum in general which is hindering in more technological breakthroughs. But progress can not be halted.