Ethereum down 14% as the cryptocurrency market drops by $ 14 billion
The price of Ether, the native cryptocurrency of the Ethereum Blockchain network, dropped by 14% overnight, with other major cryptocurrencies such as Bitcoin, Ripple and Bitcoin Cash falling between 2 and 6%.
In one hour, Ether's price went from $ 574 to $ 492, or more than 14%. While ETH rebounded relatively quickly from the $ 492 6% mark, it is still down about 10% from $ 574.
Some analysts, the host of the popular cryptocurrency podcast Magical Crypto Friends, have suggested that ETH may have dropped due to Ether's discharge through initial coin offerings (ICOs) and blockchain projects .
"You wonder who just raged $ ETH on Bitfinex - EOS did not have a lot of ETH yet and used Finex before," WhalePanda speculated, raising a worthwhile question.
The problem with ICOs and blockchain projects, which raise millions of dollars after symbolic sales, to finance operations and developments, country offices must liquidate a significant portion of the ETH they have collected. Most country offices, such as EOS, tend to liquidate their ETHs on public exchange of cryptocurrency such as Bitfinex, which triggers a domino effect and lowers other cryptocurrencies by large margins.
Price downed triggered by transparent events like the transfer of funds from the EOS smart contract to cryptocurrency trading often lead to short-term recoveries. As such, the initial drop in Ether prices of around 14% has been reduced to 8%.
The price of bitcoin dropped below $ 7,200, probably reaching the top $ 6,000. Other major cryptocurrencies such as EOS, Bitcoin Cash and Ripple have fallen similarly, in the order of 5 to 8%.
Bitcoin has been able to maintain some stability against other major cryptocurrencies and tokens, but over the last week, the price of bitcoin has dropped significantly against the US dollar, from $ 8,600 to 7,140 $.
In yesterday's report, CCN noted that the next level of bitcoin support could be in the upper part of the region of $ 5,000 or the lower part of $ 6,000. Analysts such as Willy Woo, who uses quantitative data to gauge the trend in short-term and long-term prices of bitcoin, pointed out that the price of bitcoin would likely drop below $ 6,000 but would rebound sharply after reaching 5 700 dollars.
"So, in summary, my best estimate ... slow bleeding to $ 6800 ... then a steeper slip at $ 5700, then a leveling out of the decline ... then a flat area." This is an enlightened guess based on the volume profile and fundamental data framing the movement rate, "said Woo.
Based on the failure of bitcoin and other major cryptocurrencies to maintain any momentum at current levels, it is highly likely that the valuation of the cryptocurrency market falls below the mark of 300 billion, probably to 200 billion dollars in the coming weeks.
However, analysts are still optimistic about a potential recovery in the third quarter of 2018 that could return the price of bitcoin in the $ 14,000 region.