Ethereum Price Declines to 14 Percent OvernightJune 6, 2018
The price of Ethereum has declined to 14% overnight as other popular virtual currencies like Ripple, Bitcoin Cash and Bitcoin fell in the range of two to six percent.
In just one hour, the cost of Ethereum declined from USD574 to USD492, by over 14%. While ether rebounded fairly fast from the USD492 mark by six percent, still it is down around ten percent from USD574.
Some market analysts like WhalePand, the host of Magical Crypto Friends, a renowned crypto podcast suggested that Ethereum could have declined because of the dump of Ether by ICOs and blockchain projects.
The problem with blockchain projects and ICOs that raise millions on token sales, to support developments and operations, ICOs need to settle a significant part of the ETH they raised. Some ICOs like EOS are likely to settle their ETH on public crypto exchanges, triggering a domino effect and leading other cryptos to decline by large margins.
The decline in value is triggered by transparent occurrences like the movement of funds from the EOS to crypto exchanges often results in short-term recoveries. As such, the initial price decline of Ether by 14% was minimized to 8%.
The price of Bitcoin has dropped below the USD7, 200 marks, reaching its way to USD6, 000. Other major virtual assets like Bitcoin, BTC, EOS as well as Ripple have dropped by the same margins, in the range of five to eight percent.
Bitcoin has been able to keep some stability compare to other renowned virtual currencies. However, over the previous weeks, the price of bitcoin has dropped considerably against the US dollar, from USD8, 600 to USD7, 140.
CNN cited that the next support level of Bitcoin could be USD5, 000 or USD6, 000. Cryptocurrencies market analysts like Willy Woo, who utilized qualitative information to assess the long-term and short-term price trend of Crypto emphasized that based on many indicators. The price of bitcoin will tend to dip below USD6, 000 but rebound quickly after reaching USD 5,700.
Based on the breakdown of major cryptocurrencies most especially Bitcoin to keep any moment at current levels, it’s very likely that the assessment of crypto market falls under the USD300bn mark, possibly to mid USD200bn in the forthcoming weeks.
But, market experts are still hopeful on a potential rally in the 3rd quarter of 2018 which might send the value of bitcoin back to USD14, 000.