At press time, Ethereum is trading at a stable price point of $196.72. While some analysts are still looking for the exact reasons as to why Ether has seen such a drastic downturn in its fortunes, many experts believe that the cause of this downward spiral is due to various ICOs, miners, and investors cashing out so as to cover for their losses.
What’s worse is that traders believe that the worst is yet to come for the premier crypto asset. It is being estimated that if the current market sentiment prevails, Eth could slide to less than $150 in the coming 3-4 months. Due to a lack of certainty in terms of the direction the Ethereum project is taking, many investors are cashing out so as to invest in other currencies that are backed by more scalable, real-world applications.
A Silver Lining Still Exists
Not every piece of news associated with Ethereum is bad. Reports from the Middle-east and South America indicate that nations such as Iran and Venezuela have people by the thousands flocking towards digital assets so as to build a safe haven for their life earnings.
As is well known by now, Iran, Turkey, and Venezuela are currently facing an unprecedented amount of inflation which has caused the national currencies of the aforementioned countries to lose their intrinsic value tremendously. Venezuela, in particular, has been hit with economic sanctions that have caused President Maduro to resort to desperate measures so as to alleviate some of the looming issues related to famine and starvation that are hovering over the nation.
On another positive note, a majority of young Australian investors still believe that cryptocurrencies will define the future of global finance and will be worth much more than they currently are. According to a recent survey, it was found that most Australian investors are still actively buying various alt-coins that have working products to back them up– the number of crypto investors in Australia have increased by nearly three times since the start of 2018.
News of Ethereum’s Proof-of-Stake (Casper) algorithm implementation being pushed back to 2021-22 has not gone down well with many investors. However, next month’s hard fork (Constantinople) could still usher in a bullish sentiment as per some speculators.
Currently, Eth rests within a support region between $197 and $170. But as asset holders continue to offload their Ether, a slide to $165 within the next 24-48 hours would not be entirely surprising.
Charts courtesy of Tradingview.com