Ethereum’s price fell to a low of $250 today from around $330, continuing a price decline from a high of $420 as the market seemingly cools down after a stupendous Ethereum spring.
Its price decline has taken all other digital currencies down with it, including bitcoin, covering everything in red while bringing the total market cap to around $100 billion.
The reasons for this sudden crash are not clear. The GDAX flash crash may have spooked investors, but those who suffered losses are to be refunded. That leaves those who made considerable gains with just one trader turning $350 to a million by managing to buy eth at 10 cent.
Those traders would have probably wanted to secure some of the gains, so they may have sold, causing a downwards pressure, with other traders joining, so sending the price down fairly quickly – in just one day.
Another explanation may be the ICOs. In particular three of them, Bancor, Status and TenX, which in combination have raised some $300 million worth of eth during the month of June.
They most probably have sold some of it, not least because sudden price falls seem to correlate with mega ICOs as ethereum went down after the Bancor, Status and TenX token sale:
Following that downwards pressure, others added fuel to it, both legitimately and in an uglier manner by creating false rumors aimed at causing panic, with the greater aim being to turn sentiment.
That image highlights just how important some think Buterin is to ethereum, but they’re most probably mistaken. Thought leadership would just pass to others, with plenty of decent contenders.
But after the incredible bull run, maybe the bears are trying their luck. We’ll see how much sell pressure they have left, before bulls make their appearance, as the roller-coaster and the greatest show on earth continues.