Since the beginning of the year of the Ethereum fell to 260%—, with a maximum 1401 of the dollar on 13 January to 578 dollars at the time of this writing. Coin continues a steep dive. Understand who is at fault and whether it makes sense to wait for the thaw.
Why fell Ethereum
In the beginning of 2018, when the cost of Ethereum rose to a record level, the heads of several countries stated the need to introduce strict regulation of the cryptocurrency. The Minister of Finance, South Korea Choi Henchman said that the government is considering a total ban on the coins. Similar measures have promised to make in China.
The market of digital money has responded to these allegations fall — total capitalization of cryptocurrencies fell to $289 billion, and Ethereum fell below $1000. Over the next few days, the coin played a few hundred dollars, but after fell again. The reason was a subpoena issued by the leadership of the largest cryptocurrency exchange Bitfinex trade Commission commodity futures U.S. (CTFC).
Another blow to Ethereum was a ban on advertising the ICO and cryptocurrency entered Facebook and Instagram. The companies said that digital money and the projects for the initial placement of the coins is not reliable and not credible users. Then the coin dropped to 706 dollars — the minimum at that point level since the beginning of the year. Later the example was followed by Google.
Financial regulators began to actively push the market in an attempt to limit the development of the industry, and investors started to sell the coin or to leave the market as long as the situation not stabiliziruemost. As a result, the trading volume fell, and Ethereum cheaper. The coin is now trading at $ 570.
Among others, technical reasons for the falling coins, in what analysts are calling a course correction. In the opinion of the trader under the name D4rkEnergY, the value of the currency gradually approaching to the real after a sharp rise in December last year.
Drop Ethereum led to losses of the organizers of the ICO, which conducted an IPO on the platform of cryptocurrency. 76% of the ICO projects due to the depreciation of the coins were forced to sell tokens at a price below the initial or announced at the presale.
What about Ethereum in 2018 — forecasts
Investors need to wait until a digital currency stabiliziruemost and again will rise in price, said D4rkEnergY. In prospects believe Ethereum and other market participants. Now on the same platform is a big part of the ICO, and the technology of Ethereum is used to create a decentralised game and reality shows such as “cryptocotyle”, “kriptonite” and Deus ETH. They are very popular among the community and generate revenue for the creators.
According to the forecast of the analytical company Profit Confidential, in the long term the rate will continue to rise until the end of 2018 will reach $ 1,500.
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