Good Morning/Evening Steemians,
Ethereum's price has fallen overnight from a high of more than $400 USD to about $300 USD, though it has gained some value in the last hour or so to sit at $336 USD when I last checked. So why has the value of Ethereum dropped so much in the matter of hours?
Credit: Google (Labelled for Reuse)
It has to do with new ICO that started last night for a decentralized app called "Status" which is built on the Ethereum blockchain. As soon as the sale started there was a frenzy to get hold of it's token which led to the network getting congested and not everybody who paid for the token received the token.
Because of this frenzy, just too many transactions were sent to the smart contract address which caused the network to crash. A lot of transaction apparently failed as well. Now since the transactions were taking place on the Ethereum network and it crashed, a lot of Exchanges including Coinbase, Shapeshift and Bitfinex halted the Ethereum transactions. Because of this halt people no new money was coming through for Ethereum while the holders of Ethereum may have got weary and started to sell it causing this huge drop in value.
Now since the price has started to rise again, I think the exchanges have removed the halt to Ethereum trading. So this is your buying opportunity if you want to get into Ethereum as it's value is going to go quite high still. Some people are even speculating for it's price to go as high as a $1000 USD by the end of this year. So that'd mean 3 times profit on your investment.
Steem On!
This is exactly it. Network growing pains are to be expected when you consider the sheer volume that ETH had to endure, but I wouldn't count on a price dip like this again. Time to buy while the market is still down!
buuuy the diiiippppp!
Yepp, this is the time to get into Ethereum @catotune. By the way, how can I join the curation trial that you're part of which upvotes your comments?
I am not aware of any curation trial that I'm a part of. Is that what is happening when I get comment upvotes? (If that is true I am grateful, but seriously I never did anything to join!)
Hmm, that's interesting @catotune. Yeah your comments and posts are being upvoted automatically by a curation bot.
This post received a 1.6% upvote from @randowhale thanks to @cryptodog! For more information, click here!
One day trading Ethereum makes a hard man humble
Haha good one @robbieretard.
Thanks for the explanation!
Hold on to your ETH, guys! One day of drops isn't that bad!
In addition, set up a ridiculously low limit order in case it happens again! ;-)
Great idea @jfollas!
For sure!
Definitely HODL! @britmob
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buy when it is in the dip mode, and while you have money (which i dont have at the moment) 😭😭😭
Haha, same as me @ekavieka
haha waiting for a good which get a good payout, then we can buy it. haha
Thank You for the detailed explanation. I was wondering why coinbase was crashing.
No Worries @whatitsworth.
I didn't know about this. Thank you
My honest view is that Ethereum's rise was not healthy or wise. Nothing can be worth 8.5 dollars one month then a couple of months later be worth 400 dollars. I mined a lot of Ethereum and yes you could say I am a little bitter in that I sold all mine for around 10 bucks a coin. But lets get real here - anyone buying into Ethereum when it was valued at 400 dollars a coin would need their head read! Ethereum has much potential and I hope it does well but I don't like the greed and the hype that follows these coins. Personally I want to see Bitcoin sit around 2500 to 2700 for a few months so as to get credibility and long term stability. Ethereum has to do the same thing - it is not going to be worth 1000 dollars in a few months and it would be really unhealthy for cryptos in general if that were to happen.
I know what you mean @grahamsnoplus1, but I think you need to look at the the overall ecosystem that's being supported by Ethereum. The speed of it's network is much much faster than Bitcoin. So I don't think the price is too high compared to what it's uses are. You can read more about it in my post here:
https://steemit.com/ethereum/@cryptodog/why-i-think-ethereum-price-will-go-much-higher
Cheers.
Good article. Thanks for bringing this to our attention. The blockchain is here to stay. No matter what any crypto will do in the upcoming years. I think that's a conclusion we can make by now. This is quite an interesting website I found: https://www.coincheckup.com The site is my go to place for crypto investment analaysis and indepth coin research. See: https://www.coincheckup.com/coins/Ethereum#analysis For the Ethereum Investment research.