Ethereum briefly crashes 20% to 7-week low amid worries about rival bitcoin's future
This really looks like a long "pump and dump" situation... Hopefully it will bottom out and trade at a fairly consistent level to regain some confidence. It's too bad that Bitcoin essentially fuels the fear and confidence levels in the market.
Prices of digital currency ethereum plunged more than 20 percent Sunday morning, amid concerns about the recent price surge and the future of bitcoin.
Ethereum hit a low of $130.26 around 9 a.m., ET, down 22 percent from Saturday night's prices and the lowest since May 27, according to TradingView charts of Coinbase data. As of midday Sunday, ethereum traded near $159, down about 60 percent from a record $420 hit on June 12, but still up about 1,800 percent year-to-date.
No specific reason for the move was apparent. Digital currency experts pointed to a combination of factors, including worries about a potential split in bitcoin and blockchain startups possibly selling the large amounts of ethereum they have raised in the last several weeks.
Um youre leaving out the fact that 100s of millions were raised by ICO companies and they are converting their ETH to fiat which will cause a short term depression in prices. Take this as a buying opportunity...
True, pretty prevalent now is Filecoin.io too. That shouldn't cause complete disregard for the fact that Ethereum increased in value over 1000% over the course of only 2 months and now seems to be in a correction phase. Because of the large developer community behind Ether though, it's unlikely to be tied directly to the fluctuations of the Bitcoin market for much longer.
People still look at ETH as a tradeable currency while in actuality its the Oil for the Internet 2.0