Ethereum price correction wasn’t unexpected, but plunge to $130 levels was

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Correction in cryptocurrencies or as a matter of fact any commodity that gains a lot of value in a short period of time is bound to see a correction and ethereum was no different, but price drop to $130 was completely unexepcted.

Ethereum has been garnering a lot of attention and first half of 2017 proved to be a huge positive for the cryptocurrency. Prices of Ethereum shot up to as high as $400 from a lowly $10 in a matter of just six months and that indicates that a correction was imminent.

The last weekend saw ethereum go through a roller coaster ride with prices declining by as much as 25{7b1a8a58d3ffe2d8e535e80e794d8bc0bf06a3ecc0c2050b83ca37784c6fddca} to a low of $140 an ether. However there was a recovery on Monday and subsequently today with ether currently trading at $189 as of this writing.

Analysts said that the price drop and subsequent selling of the cryptocurrency wasn’t unexpected because it has been a long time coming. Anything that goes up in value and volume in a short period of time will have to come down and go through a correction phase.

Talk of a cryptocurrency bubble and a rise in popularity of Initial Coin Offerings have been pressuring prices as of late. Ethereum shook investor confidence on June 21 when a flash crash caused its price tumble from $296 to $0.10 in a matter of minutes before recouping its losses.

Also weighing on Ethereum as of late has been the uncertainty surrounding bitcoin. Investors are gearing up for the August 1 deadline for a decision on how the cryptocurrency will be structured going forward. That decision could impact which cryptocurrency investors choose.

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