It’s pretty difficult to miss out on Ethereum ETH is ranked as the second-best coin according to the global coin ranking list. Thanks to the smooth and operative execution of smart contracts and the ability to host different tokens and coins on its chains, Ethereum surely earned to rest among the best. However, it seems that although ETH is still holding onto its throne, that things aren’t looking very good in general when it comes to how ETH started off in the year of 2018. How come Ethereum started off badly and can we expect from ETH in the following months?
Ethereum in 2018
At the end of 2017, as many coins were jumping up high without an excuse, it was predicted that the year of 2018 will be THE year for the world of cryptocurrencies. However, it seems that this year is not all about milk and honey for some of the coins. One of the coins that didn’t leave up to expectations everyone had for cryptocurrencies for the year of 2018 is Ethereum (ETH).
The reason to believe that this coin started off this year with a negative connotation is clearly visible in the pace of growth that Ethereum had since the beginning of the current year. That is how from the beginning of January of 2018 Ethereum managed to lose almost 50% of its previous price, more specifically losing 47% against the dollar.
The things weren’t always that black for Ethereum as it went through January as one of the top gainers of the month while reaching the price of over 1000$ per one unit at one point, but it was all in vain as losses become even more intense with the beginning of February. That is where things started to look bad – not only for ETH but for the majority of other currencies that are currently circulating the market.
AS the market dip started to take its toll, Ethereum ETH, along with other currencies, started to plummet. Soon after the deep was heating up to the point of achieving a boiling intense atmosphere in the crypto market, Ethereum managed to drop for 47% in total, causing it to trade in the red with severe losses as a clear consequence.
However, the main point in this case scenario is that the investors shouldn’t get too worried about this drop. Although the mentioned drop of nearly 50% against the dollar seems more than discouraging, when compared to over 9000% of gains in 2017 that ETH proudly had, the decline becomes irrelevant for the further development of Ethereum and its platform.
Moreover, the beginning of 2018 wasn’t that bad either as Ethereum managed to reach an all-time high of 1423$ per one ETH unit, which was an amazing achievement. What followed next was a pretty harsh market dip that lasted for more than 8 weeks, ravaging the market and making ETH drop with it.
The reason behind the drop that cut ETH’s all-time high in half was the announcement made by Senate Banking Committee made on February 6th, when they showed their concerns over fraudulent actions related to ICOs.
This statement is thought to have caused a massive dip in the market.
March wasn’t any good for cryptos either, obviously including Ethereum, as Google, Twitter and Facebook announced the ban of ads related to cryptocurrencies that should be proclaimed as active and valid in June of 2018. To add more tension to the market, SEC announced that they will be testing dozens of ICOs to check whether their suspicions are true. That is when people started to sell their coins, consequently causing a massive dip in the market.
Ethereum fell down radically as well, driven by the tough currencies of the market crash.
Ethereum and the Market
Things still don’t look any better for Ethereum ETH as this currency is currently trading in the red against the dollar.
After the latest change in its price, Ethereum fell down by -1.91% against the dollar but has risen against BTC in the last twenty-four hours, gaining 3.14% on its trading price against Bitcoin.
At the current moment, Ethereum can be bought at the price of 379$ per one ETH unit, which is still a good price when compared to the prices that other coins are being traded under. However, it is more than obvious that this price is more than half cut from ETH’s all-time high of over 1400$ per one coin.
Hopefully, Ethereum ETH will soon be able to bounce off and make waves towards reaching and potentially breaking its record price.
This information should not be interpreted as an endorsement of cryptocurrencies or a recommendation to invest. Historic performance is no guarantee of future returns. As an investment class, cryptocurrencies are speculative investments and investing in cryptocurrencies involves significant risks – they are highly volatile, vulnerable to hacking and capital loss and sensitive to secondary activity. Before investing you should obtain advice and decide whether the potential return outweighs the risks.