For people who hold Ethereum (ETH) for more than just buying other tokens, its slow descent over the past two and a half months have been extremely painful. While this coin’s price journey has taken a pretty similar path as Bitcoin’s, the past few weeks have been much rougher on ETH – which has fallen 48% in the past 30 days, compared to a 23% drop in BTC’s value during the same period.
What’s the deal with Ethereum’s nosedive?
Why is ETH, specifically, having such a bad day on the exchanges and heading southward toward a level that it hasn’t been down to in months?
It’s strange, because there have been some positive signals coming from the market regarding the Ethereum ecosystem. ERC20 tokens, which are cryptocurrencies that launch on this network, are coming to Coinbase. There are hundreds of ERC20 tokens out there. In fact, they make up most altcoin options. So far, we have no idea which tokens out of the hundreds of options will get added to Coinbase.
That should be a boon to the ETH price, right?
Well, it wasn’t – quite the opposite, in fact.
The world surrounding Ethereum is dictating price movements
Negative trends are also surrounding the crypto market, which has overall taken a pretty big dip today. Twitter and LinkedIn just decided to ban cryptocurrency advertisements on their social media platforms, following in the footsteps of Google and Facebook. They aren’t banning crypto content outright, and they say that the reasoning is that they don’t want to expose their users to ICO scams or other predatory ads.
It’s an understandable thing on their part because social media corporate responsibility is being looked at in a whole new light with this whole Cambridge Analytica thing.
But at the same time, there is positive news coming from South Korea – so there, as always, is no way to pinpoint exactly why the market is dragging Ethereum down so low this month.
How about you guys – do you mostly use ETH for transactional purposes (like getting other coins on exchanges rather than with a BTC pair), or are you guys holding these hoping they will shoot up in value again?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.