On Tuesday, the entire cryptocurrency industry sloped downward with Bitcoin going below $6,500 and Ethereum trading below $500. Most of the top cryptocurrencies were able to enter Wednesday’s trading session with an upside swing and regain some of what they lost on Tuesday when the cryptocurrency market cap lost up to $40 billion.
Ethereum’s Price Crumbles Along With the Other Leading Cryptocurrencies
The brief recovery was unsustainable and the market eventually started to decline again. This forced Ethereum to fall below its psychologically important mark of $500. Ether traded at $488 as at 19:43 UTC today. This showed a decline of 5% within just 4 hours. The market capitalization for Ether also fell below $50 billion.
Bitcoin was a little more fortunate than Ether as it endured the 3% price decline that placed it near the $500 mark of its year-to-date low. At the time of writing, Bitcoin was struggling to stay above $6,500 while it’s market capitalization had dropped to $112.2 billion.
Why is the Price of Ether Falling?
No one can point out a precise reason for the price crash. Some believe that the initial prediction that institutional investors will enter the market and bring cryptocurrencies to glory did not come to past. Some others believe that the price crash is due to the hack on Coinrail during the weekend.
Despite the current state of the industry, there are those who believe that it will get worse before it gets better. So, even if the price of Ether and other leading cryptocurrencies is currently taking dips, a time will come when they will retrieve their glory and soar higher than they did in December last year.
The cryptocurrency market is still unpredictable in the long run so there is no telling what the next few months, or even weeks, will bring. While things may look bad now, the industry can take a upside turn for the better in no time.