After what can only be described as an economic bloodbath that took place yesterday, the world’s second largest cryptocurrency by total market capitalization has been left licking its wounds. At press time, Ethereum is trading at $229.14— a value that is close to its lowest price point since September last year.
Since the currency had been hovering around the $290 region for nearly a week prior to yesterday, investors were beginning to think that the crypto landscape was beginning to turn bullish once again. According to data available on Coinmarketcap, ETH had soared to unexpected highs earlier this year, even touching a staggering trade value of $1377 on January 16, 2018.
However, since then, Ether holders have not had much to celebrate about, except for a small upward movement that lasted between April-May when the currency picked up steam and touched a respectable price point of $830.
It is also worth mentioning that many analysts including Arthur Hayes, CEO of BITMEX, had predicted Ethereum’s drastic fall more than a month back. Hayes had been vocal about Ethereum being a currency with little to no value and has often referred to it as a ‘Shitcoin’. In an article written by him for his company’s weekly magazine ‘The Crypto Trader Digest‘, he mentioned:
“I don’t know what that tipping point will be, but in hindsight, it will be obvious when the capitulation occurs. There are those who believe that a sustainable token economy can exist. But they won’t be buying at these levels. Sub-$100 takes us back to Spring 2017 levels. At those depressed prices, the carrion is ripe for ingestion. It is this moment, that Ether goes from a 3-digit to a 2-digit shitcoin.”
While Hayes might have looked like a hater when he wrote this piece sometime back, many of his criticisms regarding ETH have definitely come true. Not only that, there are various other analysts who also hold a similar opinion and believe that the rise of Ethereum was primarily driven by the ‘ICO boom that took place last year’. Now that the ICO market has cooled off a bit, Ethereum’s struggles have been exposed and the currency has been left to lick its wounds.
Following this latest financial onslaught, the crypto sector as a whole seems primed for another slow run for the next couple of months.
As things stand, the total market capitalization of all the crypto assets available in the market stands at $207 Bln. However, this number lays in stark contrast to the $239 Bln figure that was visible just 48 hours ago.
Ether price chart courtesy of TradingView.com