There are many different reasons why Ethereum’s price is falling after its incredible run during the past few months. Any strong value increase will ultimately lead to a correction. Anyone who thinks Ethereum could escape such a correction is either delusional or has no idea how the cryptocurrency ecosystem -or any market, really- works. It is impossible to see a currency’s value go up by over 1,000% in just a few weeks without some degree of correction. Unfortunately for Ethereum users, that correction is rather severe.
Finding a proper explanation for this trend is not easy, as it appears most explanations are based on opinions. There are those who feel the uncertainty regarding Bitcoin is partially to blame for all of this as well. There is a certain truth to that. Bitcoin’s price will dictate the value of all other currencies, including Ethereum. Another reason may be the large investors – known as whales, who are looking to prey on weak minded traders and facilitate panic selling.
People who firmly believe in the underlying value of Ethereum have nothing to worry about. After all, the value of Ether is still higher compared to what it was just under a year ago. Anyone who bought ETH at around $400 will be rather disappointed. One golden rule in cryptocurrency is to never choose a pump and buy a currency at the peak. There are still a lot of people who never got that message, apparently.
