Over the past six months, Ethereum (ETH) has been in the hands of the bears, decreasing from its peak of $800 to $169 in a matter of months. As such, a lot of analysts and traders are wondering where the true bottom of Ethereum (ETH) lies. Nevertheless, over the past couple of days, the digital currency has improved its stand to attain a value that is hovering around the $235 mark.
Why the Massive Price Dump?
In the digital currency space, an inflow of tokens released into the market might distraught the market value of that particular digital currency unfavorably. For Ethereum (ETH), the price slump was mostly due to big Initial Coin Offerings dumping their ETH holdings to fund their projects.
Ethereum (ETH) Price Today – ETH / USD
The most significant event took place in May when 100,000 ether (worth $60 million at the time) were dumped into the market, resulting in a significant decrease of more than 15 percent within weeks. By August, the value of the coin declined to $300, and there was another dump in mid-August that saw the coin decline further.
What Is Next for Ethereum (ETH)?
Ethereum (ETH) has also encountered strong rivalry from the likes of Cardano (ADA) and EOS. In the last couple of months, the value of the coin has seen a couple of falls and spikes, with every spike accompanied by a sharp decline. This indicates that if the digital currency cannot establish a stable resistance level soon, its value might continue to plunge.
Nevertheless, as much as there are a lot of market dynamics that could trigger a bearish trend for Ethereum (ETH), it is estimated that the value of the coin would not fall below the $140 mark before it skyrockets again. This is because that is the value at which miners would break even, so anything beneath that level would not be worth it.
Princess Ogono is a writer, lawyer and fitness enthusiast. She believes cryptocurrencies are the future. When she's not writing, she spends time with her adorable cat, Ginger and works out often.