Ethereum (ETH) has become the target of extreme negativity as its price unravels at lightning speed. After the latest massive sell-off, with volumes suddenly exceeding the equivalent of $2.7 billion in 24 hours, ETH prices burrowed deeper toward the $200 level, dropping from a relatively stable $283.72 to as low as $226.18 around 07:30 UTC on Thursday. Trading volumes continue to expand as selling accelerated.
The slide in ETH prices drew the attention of Bitcoin (BTC) maximalists, who disapprove of the Ethereum hype. WhalePanda, a prominent Bitcoin proponent, tweeted:
ETH has generated negative opinions as its price is now significantly lower compared to the same period of 2017. In early September 2017, it hovered slightly above $300. However, the more dramatic slide in ETH is against Bitcoin. All hopes of a “flippening” and ETH taking over seem to be lost as ETH crashed from a peak of around 0.14 BTC last summer to 0.03 BTC.
As of 08:30 UTC, Binance saw accelerated selling in the ETH/USDT pair. Tether (USDT) has a share of around 29% in ETH trading right now, with Binance being the most active exchange in the dollar-denominated trading.
Reasons for the weakness include the looming upgrades to the Ethereum network and the uncertain future of the project. In October, serious updates are expected with the Constantinople hard fork. The developer team has not decided on all updates, but a drop in the block reward from 3 ETH to 2 ETH is the most probable change.
The uncertainty has caused Ethereum mining to stagnate, with no significant growth in the hashrate observed in the past few months. The low rewards and the drive to turn ETH into a proof-of-stake coin are gradually unraveling the mining economy.
Another negative factor is the slowdown in fundraising through Ethereum. Capital raised through initial coin offerings (ICOs) declined significantly in July and August, and the downward trend may persist in September. The volatile ETH price is making it difficult for ICOs to cover operating costs. Added to this is the general failure of Ethereum-based projects to take off due to factors such as slow development, gas costs, or a lack of users.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.