Will Ethereum Price Recover; Is there any Chance for Bull Run?

Is there any chance for Ethereum to regain an all-time high? Ethereum is one of the most beaten down cryptocurrencies in the top ten list. The coin has lost all the gains that it had generated during the last year bull-run; Ether is currently trading at the lowest level since May 2017.

Source:coinmarketcap.com

ETH coin has hit the highest level of $1441 at the beginning of this year. It is currently standing around $132. Ripple has also replaced Ethereum from the second spot regarding market capitalization. ETH market cap fell to $13 billion following the sharp decline since the start of this year, making it the third largest crypto coins according to coinmarketcap ranking.

Why Ether Price Collapsed?

There are several reasons for the selloff in ETH price over the past eleven months. Initially, the coin started plummeting due to the wider market selloff. Lower than expected adoption, criticism from analysts and rejection of Bitcoin ETF’s from SEC has triggered the bearish trend at the beginning of fiscal 2018.

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Ethereum (ETH) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$5,280.00
-0.07%
Ethereum (ETH)
$169.93
-0.04%

However, Ether price stabilized around $200 level for the past two months. Investors thought that ETH price had hit bottom and it is setting foot-prints for upside strides.

ETH surprised investors last week when it again started crashing to the new low of this year.  The third largest coin is struggling to gain upside momentum at present – traders fear that ETH could retreat to double-figure if the bearish trend extends into the coming days.

The latest selloff in ETH price is blamed on wider market selloff along with SEC announcement of a crackdown on ICO’s. The latest SEC ruling against two minors played a key role in dropping its price. The declining liquidity is another problem that ether is facing over the past few months

According to the research by The Block,” ICO treasuries hold more than 3.57 million ether tokens. This is about 3.5% of the total ETH is circulation. Companies that raised funds in ETH during ICOs still have a fair portion of the token in their possession. If the SEC continues to take action against ICOs, these companies may be forced to reimburse ETH in USD, and this would require that they liquidate their ETH reserves.”

ICO treasuries were holding 4.65 million ETH Back in April, or 4.5% of the total supply. The number, however, dropped sharply since then as ICO’s have liquidated 23% of the amount in the past couple of months.

Will ETH Recover

The performance of ETH coin is highly correlated to the overall market trends and regulators stance over ICO’s. Apparently, SEC and other regulators are closely watching ICO related activities, and reports suggest that ICO activities are declining at a robust pace – which isn’t a positive sign for ethereum and its investors. The bullish market sentiments and crypto adoption from institutional investors could offer the support to prices.

 

 

 

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Based in Saudi Arabia, Siraj has a strong understanding of and passion for stock and cryptocurrency markets. He has worked for international clients for many years on several projects related to the stock market, equity research and other business, accounting and finance related projects. Siraj is a published financial analyst on the world's leading websites including SeekingAlpha, TheStreet, MSN, and others. Siraj is Crypto Editor at TheOofy.com.