ETH has plummeted from the peak $800 to $200 and below within the past 6 months on a bearish trend.
This ill-fated course has resulted in most traders and analysts thinking of Ethereum’s ultimately deepest
point. On the other hand, last few days showed us that the crypto seems to maintain a value just under
the level of $230.
You have to understand that when new tokens are launched into the market, the value of this
cryptocurrency in the market might be affected as a rule of the crypto world. With regard to Ethereum
(ETH), the large ICOs releasing their ETH holdings into the market to support their business ventures
constituted the major part of the reason for this plummeting course of price.
Among them, the most substantial one was in May; $60 million, worth 100,000 ETH, $600 per token at
that time, was released into the market and caused a bold 15% drop within a couple of weeks. As of
August, the price of ETH dropped to $300; and in August, another wave of 110,000 ETH created another
bearish trend leading to another dip.
Another reason for the concerns on Ethereum results from the network issues to maintain its system
and fine tune its upgrades for a perfect condition. For example, the network had slower processing for
LongHash data, creating a total workload of 80,000 with unconfirmed transactions. As the second
biggest cryptocurrency, being one of the most popular coins, this seems clearly not well.
What Would Possibly Happen?
Aside from these problems, ETH has experienced a harsh competition from the EOS sympathy, having
4 Dapps, when Ethereum has just 2. The last couple of months has shown some spikes and bold drops
following these spikes. This indicates that its market value might keep its downward trend unless the
cryptocurrency finds a steady resistance in near future.
On the other hand, although ETH could be subject to a number of market dynamics for a bearish trend,
the crypto’s value is not expected to head to below $140 without bumping again. Because the critical
value for miners is this level, and the values under this level would indicate that it does not worth.
Surprisingly, when the value dropped to the levels below $140, this will make the coin not profitable for
miners and result the mining to stop and ETH token supply to decline. So, Ethereum will be more
demanded and finally, turn out into a bullish run. Thus, ETH might go down, but just only to a limited
extent. A bull run might be invited also by a bearish trend.