After an astonishing spring, ethereum’s price has somewhat calmed down recently, sidewaying for some time, but turned downwards yesterday, falling around 10%, from $360 to a low of $325, somewhat recovering to around $335.
The sudden fall in price appears to coincide with the launch of Status, one of the most anticipated ICO, which has a cap of 300,000 eth, currently valued at almost $100 million.
They plan to launch an ethereum based WeChat like app that connects to dapps forming an ecosystem of sorts not dissimilar to what Coinbase’s Token app aims to achieve.
But why the fall in price would coincide with the ICO is not clear. Some ethereans could not get through, the network experienced congestion, and there is some controversy over whitelisted addresses, which Status says were used to ensure decentralization of investors as the whitelisted addresses had KYC-ed the investors to make sure they are an individual, thus achieving the greatest distribution.
That may have led some investors to sell, but the fall in price might have been more subjective as the New York Times covered ethereum, which some say suggests the peak has been reached as now everyone knows about it.
Some, however, say that if price prediction was that easy we’d all be billionaires, not least because New York Time’s article may actually bring in more investors, in the short and long term.
Yet another even more subjective reason may be price fell because it’s summer. The sun has been shining brightly on London for more than a week now in one of the longest heatwave. Investors, therefore, may be trying to keep cool down the beach, rather than play trading. Sell in May and go away as they say.
Whether this is just a dip or whether the market has turned only time can say for certain, but we can say, regardless of the answer, that you’ll probably enjoy a dip down the beach or pool to keep cool, so go ahead.