After crossing the $225 barrier last week, many investors had started to believe that things were finally turning around for the world’s second largest cryptocurrency by total market capitalization. However, within the span of the last 24-hours, the price of Ether has dipped by over 11%, currently laying around the $194.50 mark.
As can be seen from the chart above, this latest free fall seems to have been triggered by 4-hour sell-off period wherein Ether dropped from a respectable price-point of $223 to nearly $191. As a consequence of this, Ethereum’s total market cap has now reduced from $22 Bln to around $19.8 Bln (at press time).
Most of the Top-20 Altcoins are Bleeding Right Now
In another dramatic turn of events, most of the top 20 digital currencies by total market capitalization are seeing red as we speak— with 6 of the top 10 coins facing a loss of more than 6% in their value since yesterday afternoon.
Some of the hardest hit currencies other than ETH include EOS, Litecoin and Monero— all three of whom dropped by more than 10% within the aforementioned time-frame.
However, in the midst of all the financial downturn, there were assets like Tether, Dogecoin who were able to stay afloat and maintain their prices. Lastly, it is also worth noting that at press time, Bitcoin, the world’s premier crypto asset, is trading at a price point of $6,255— thereby signaling a drop of more than $250 since yesterday.
Ethereum Future Forecast
Amidst an immensely bearish market, there are still many who believe that Ether is currently an “undervalued investment”. As per an article on Forbes, Marius Rupsys an established cryptocurrency analyst argued that:
“There is no clear valuation model for digital assets. People look at the number of transactions, then at the number of daily active users but there is no one model to derive the actual value for protocols such as ethereum.”
He then went on to add that:
” [Since] This technology is still in its early stages, it would be rather difficult to say at this point of time if ether should be valued at $200 or at $1,000.”
While many traders were expecting ETH to close in on the $300 psychological barrier in the weeks to come, this latest slide will once again cause potential buyers to re-assess their investment strategies.
Charts Courtesy of Tradingview.com