Ethereum (ETH) is still dropping sharply. In fact, the rate at which the digital asset is falling is much higher compared to other assets among the top tokens. This continued downward spiral has surprised investors and is causing concerns among many regarding were the digital asset is heading.
It appears that no bottom is OK for Ethereum (ETH) as it continues to drop. This shows that the digital asset has fallen from approximately $1200 since the start of the year. Thus, the token has lost over 90% of its original value due to the highly volatile market.
Ethereum (ETH) at Risk of Drowning into the Double Digits
Ether is at risk of going into double digits because the next support area for the cryptocurrency is at the $100 position. There’s a psychological and technical support. Which is why the support line is very important. The last time ETH saw these levels was May 2017. At the time, the digital asset had formed a support of $91.
This clearly indicates that if the price of the digital asset breaks the psychological and technical support area of $100; it can drop to $91. This is the primary reason why it is crucial for the digital asset to retain the $100 support of area. The issue is that the downside momentum is ferocious to the point that it might break $100 as well.
Double digits for ETH is now becoming more of a possibility rather than an imagination. Hence, the reason why investors remain sceptical about Ethereum (ETH) considering the significant amount of value it has lost.
Ethereum (ETH) Has Lost a Significant Portion of its Value Compared to the Other Top Assets
As mentioned above Ether has lost a huge portion of its value. The figure stands at 90% as of press time. Among the top three virtual currencies, none of have lost such a huge amount of value. Ethereum’s value erosion is nothing short of enormous. And with the Initial Coin Offering market now in trouble, it appears the issues Ethereum (ETH) is facing isn’t about to end anytime soon. Authorities around the world have started tightening the regulation of ICOs. This is why the fundamentals are not positive.
A Fall Below the $100 Area Appears Likely
The current price movement of Ether means that a fall below $100 is imminent. Yes, things are not actually looking good for Ether. Additionally, with the competition within the Blockchain increasing from the other virtual currencies, the use of the Ethereum blockchain isn’t increasing by any means at a faster pace when compared to what it was earlier.
Whether we will see a turn around in the fate of the digital asset remains to be seen. We can’t say if it will hit the heights it attained when things were better. That is another matter altogether. For now, however, it appears that there is no bottom deep enough for the Ether token price.
What is Ethereum?
Ethereum, the second-largest by market value, is preparing for the next move against the US dollar but declined versus bitcoin. ETH/USD could rise in the near term if there is a successful break.
- There is a key bullish trend line forming with hourly chart of ETH/USD (data feed via SimpleFX).
- The pair may continue to rise and it could even break the recent high.
- Ethereum price is trading with bullish price action against the US Dollar and Bitcoin.
- Although Ethereum prices moved sideways on Friday morning, a new fund endorsed by Ethereum co-founder Vitalik Buterin has the crypto poised for some massive gains.
The secretive project is the brainchild of an Avengers-like cast of Ethereum power players, including Cosmos, Golem, Maker, Global Blockchain Labs, OmiseGo, Raiden, and Tendermint. (Source: “Vitalik Buterin Hopes New Ethereum Fund Will Deliver on Hype,” CoinDesk, February 16, 2018.)
All these companies are developing decentralized applications on Ethereum’s platform, which, in a sense, makes them competitors.
However, they have a shared interest in strengthening the Ethereum ecosystem, because the stronger that ecosystem, the better its chances against rival blockchains.
With this in mind, they created the Ethereum Community Fund (ECF). In a broad sense, it opens the lines of communication between disparate projects on the Ethereum blockchain. But more specifically, it creates a grant program for financing select projects.
“Ethereum has grown beyond my expectations over the last few years, but the work is clearly not finished,” Buterin said in a statement to CoinDesk.
What this does is make Ethereum greater than the sum of its parts. How many other blockchains can boast of anything comparable? It’s slim pickings, dear reader.
There is an upside reaction and the price moved back. On the downside, there is a key bullish trend line forming with hourly chart of ETH/USD. The pair is trading with a positive bias. Any dips from the current levels remain supported.
Ethereum users fight against recovery of Parity funds
The debate over Parity’s lost funds has reached a climax over the past few days, with a strong anti-recovery stance being taken by many in the community.
Parity’s decentralised multi-signature wallets were compromised after a user exploited a bug in an Ethereum smart contract, deleting the wallet’s library function.
This locked up over 500,000 Ethereum and rendered all the wallets unusable.
Parity stated that in order to recover the lost funds, users would need to “hard fork” the blockchain. This would require the consensus of miners, who verify transactions on Ethereum.
To facilitate the recovery of the parity funds, Ethereum developers created an Ethereum Improvement Proposal (EIP), which would function as a standardised recovery model.
The EIP is open to public comment, and the vast majority of those commenting are against the implementation of the EIP.
This choice is indicative of the difficulty of blockchain governance, as there is no centralised authority to appeal to in this situations.
While Parity users lost a large amount of funds and want to recover them, those against the implementation of these recovery tools argue they could increase the Ethereum blockchain’s attack surface and increase its reliance on EIP editors.
Many referred to the EIP as a “get out of jail free card”, which only requires the approval on EIP editors to manipulate funds on the blockchain.
They argued that the implementation of EIP 867 could potentially damage the decentralisation and security of the blockchain.