Ethereum price doesn’t seem to be finding the floor. As the street believes this is the floor, the price of Ether breaches it again exposing further downside. A lot of bulls see this as an oversold opportunity to buy, the bears believe it’s the end game of the second largest cryptocurrency on the street hinting exists.
Bears say sell
Ethereum (ETH), after staying stagnant for some time now around USD 350, saw a vertiginous plummet today taking it below USD 300, the first time since November 2017 marking a 60% wipeout in 2018. Even though at the moment there are no clear reasons for what happened with Ethereum and why its price experienced such an important drop, apparently, its decline, fundamentally, seems because of the increase in competition, scalability issues and congestion the blockchain is facing in real time. First, it was Fcoin whose controversial business model which encouraged its users to vote for digital assets that are on the verge of being listed by the form of airdrops clogged the Ethereum blockchain.
Then the move of Tron and EOS to their own MainNet not only took away two of the biggest projects from Ethereum Blockchain but also started posing direct competition to Ethereum. Ether had skyrocketed over $1,000 in February as startups built projects on top of the Ethereum blockchain and sold digital tokens in exchange for ether in crowd sales known as initial coin offerings. Investors who bought Ether to participate in those ICOs drove up the price. And now as some of those projects are cashing out to cover expenses or moving to their Mainnet is actually hurting Etherum leading to this weakness.
Bulls still say buy, this is just the start
Although the short to medium-term dampness persists, in long-term the fundamentals of Ethereum are still strong and the price can definitely see a recovery. Many believe Ethereum is following the trend of the Bitcoin and the drop is the price is similar to that happened to Bitcoin post-Mt Gox went bust, only to rise again. Even Ran Neuner tweeted that it seems Ethereum is oversold.
ETH just dipped to September 2017 levels. I’m not sure when the market will turn but I am sure we are at way oversold at the moment. pic.twitter.com/0H1Rpw4gBj
— Ran NeuNer (@cryptomanran) August 13, 2018
The Ethereum Foundation is working furiously toward scaling solutions. Plasma, Sharding, Casper, are all priorities for the Foundation and its allies in building out a scaled, decentralized blockchain. Also, the Enterprise Ethereum Alliance continues to add interesting allies. Recently Jun Hasegawa, the founder, and CEO at OmiseGO had also outlined the future of Ethereum and the roadmap of its growth over the next two years. According to him its year 2019 when Ethereum will find its real business adoption and the DApps on its blockchain will rise. Following which in 2020 Ethereum will massively scale up as its adoption would increase as the coin would become more mainstream.
Crypto economics my perspective / prediction.
— JUNΞ (@JUN_Omise) July 30, 2018
2019 : Real business adoption / UIUX focus tools / More Dapps
2019~2020 : #Ethereum massively scale and used by gov.
We will see huge difference between real adoptable protocol and toxic speculation project.
— JUNΞ (@JUN_Omise) July 30, 2018
Recently, Vitalik had also has given out a new outline of the algorithm require control on more than 99% of nodes of the Blockchain to carry out an attack making Ethreum nearly attack proof.
Although the short-term fall is uncontrolled, Ethereum still has a lot in its hand to fundamentally change the company. Although it won’t be easy to change the sentiment of the market instantly, its delivery timelines and the way it manages its current issues will definitely be something that investors would watch
Will Ethereum win the battle and regain its lost glory? Do let us know your views on the same.