Ethereum price analysis: Why is Ethereum falling today?: In the last couple of months, during the cryptocurrency crash, Ethereum was outperforming by holding its ground. At one point in time, it was even in the green on a month on month basis. This is in stark contrast with the performance of Ethereum in the last 24 hours.
Ethereum dropping in last 24 hours:
In the last 24 hours, Ethereum has dropped by around 5%. In contrast to this, Bitcoin has almost held its place around $ 11,000. This is the reason why many of the investors are asking the question why has Ethereum dropped below $ 900 mark.
Most of the cryptocurrencies are witnessing a short-term negative trend. Ripple also has fallen by at least 10% to around $ 1.06. Similarly, Bitcoin is outperforming with the fall of just 2%.
The reason for the fall can be attributed to stable positive rise in the last few weeks. Moreover, Ethereum had also held its price during the correction in cryptocurrencies as well. This is another reason why investors might think of booking some profits.
On the other hand, the underlying principles, as well as applications of Ethereum, remain strong. More and more developers are trying to use Ethereum in order to develop their applications. Thus, there is no risk to the applications of Ethereum.
It remains to be seen whether this is a short-term trend or whether it would continue in the future as well. If indeed, it continues in the future, many of the investors would actually switch over to other cryptocurrencies.
Also, the rise in Ethereum has not been as astronomical from the bottoms as in other cryptocurrencies. It has provided stability to the investors but it has not provided significant returns to the investors. That is why investors are now turning impatient when it comes to Ethereum.
With the underlying principles are still strong, there would not be any worry for most of the investors. However, the momentum is clearly not on the side of Ethereum in the last few weeks. This is the reason why the investors would be eager to clock in some profits pretty soon.
The consolidation of last 24 hours seems to be ending. It remains to be seen how the price of Ethereum moves in the next 7 days are so. Up until now, it seems like it can easily increase by 10% or even more in the next 7 days.