Ethereum definitely had its lows during the year of 2018, however, the once second largest crypto had hit its lowest on the year to date in November, now being traded below the value of 130$.
With the start of the November dip, also referred to as “Bitcoin Carnage” or even “Great Dip,” Ethereum lost its spot to XRP, now being ranked as the third largest crypto by its market capitalization.
Bitcoin lost billions during the course of several weeks now counting around 12 billion dollars in market capitalization, while XRP was able to go above ETH with 16 billion also acquiring gains in the middle of the declining market.
Ethereum is still dipping, going down by nearly -30% in the course of the last week, making it appear to have little chances of getting back up any time soon.
Will Ethereum Recover From Its Lowest Price?
Ethereum saw its lows even before the November dip when it dropped below the initial value of 200$ in order to touch the lowest price at the time, trading at 198$.
Even though Ethereum was able to acquire some gains in the following weeks and get back to the value of 224$ in October, ETH soon started to go down with the dipping market.
Now, ETH even went below the value of 130$, trading at the price of 122$, which is officially the lowest price Ethereum had seen in 2018.
Vitalik Buterin even stated back in September when Ethereum first went below 200$ that he wouldn’t be surprised if ETH went down to touch 0$ by the end of December.
Ethereum (ETH) Price Today – BTC / USD
This statement probably did more harm than good for ETH in the market, probably scaring some holders and investors off.
It is considered that Ethereum was having a rough time in the market even before the November dip, losing on its value at an accelerated rate in the last several months mostly because of its scalability issues.
Ethereum’s main catch is the ability to offer tools and ecosystem for Dapp development, however, the network is experiencing scalability issues, further said to be causing the dip alongside negative market trends.
Ethereum More Likely to Rise with the Implementation of Scalability Solution
It is yet not certain when the implementation of an effective scalability solution will take place, but Vitalik Buterin already stated that the team is working on providing scalability solutions for Ethereum.
As stated, Ethereum will get to scale its network with the implementation of Sharding protocol first presented by Zilliqa (ZIL), which should solve all scalability problems.
With this implementation, Ethereum transactions will become faster and the network will acquire better performance.
This should make more benevolent conditions for Ethereum in the market as well, allowing ETH to acquire positive momentum for acquiring gains and heading towards recovery.
However, the way things are looking in the market at the current moment and for several weeks back, ETH is less likely to see any serious improvements by the end of 2018.
In case the market trends switch to more positive, ETH could benefit from this external factor and head to a potential recovery.