Ethereum (ETH), the second largest cryptocurrency by market capitalization, continues to decline significantly harder than the market leader, Bitcoin (BTC).
The price of one ether coin (ETH) reached its all-time high in mid-January of this year, topping out just above $1430. Now, Ethereum is trading at $220.30 per coin — and the near future isn’t looking particularly positive.
The first reason Ethereum may be crashing so hard is that its previous highs were inflated, leading to the cryptocurrency itself being overvalued.
The ICO bubble has popped, along with the general cryptocurrency market bubble — and with increased regulation, it’s unlikely the ICO market will ever recover to previous highs. Thus, it stands to reason that Ethereum may not either.
Investors are Impatient
Another issue plaguing Ethereum — and every other cryptocurrency, for that matter — is the fact that cryptocurrency investors expect massive returns in a very short period of time. Very few retail investors who got involved late last year are still playing the game.
A Flood of FUD
Ethereum has also become the recent victim of a flood of FUD (fear, uncertainty, and doubt).
Earlier this week, TechCrunch‘s Jeremy Rubin suggested that ether itself may be worthless.
Angel Versetti, CEO and co-founder of blockchain-powered network Ambrosus, claims much of this FUD is actually the product of Ethereum competitors.
Easier to Short
Finally, the entire cryptocurrency market is firmly in the bears’ control. Because of this, most traders are profiting by shorting Ethereum.
What do you think about the current state of the Ethereum blockchain and the price of ether? Let us know in the comments below!
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