Ethereum’s price has been falling in the past few days, down from around $300 to $260 since yesterday according to data from Coinbase’s GDAX, one of eth’s biggest exchange.
That continues a downwards pressure since it reached an all-time high of $420 last month, with price briefly halving to $206 on June 27th, to then somewhat stabilize around $260.
The main reason for the price fall might be pressure from mega ICOs which have recently raised nearly a billion dollars worth of eth in just around one month with the latest being EOS.
That project raised 650,000 eth, currently worth almost $200 million, with the aim of creating a new blockchain which they are seemingly marketing as an ethereum competitor.
They say their blockchain will be better because it will be more scalable as it will have parallel processing, however, our brief investigation found no detail whatever, with the project’s focus seemingly being more on marketing than actually presenting some breakthrough in scalability.
But that marketing has seemingly worked for them, at least for now, with the token already listed on some exchanges, such as Kraken, where it has risen 107% even while the token sale is in process.
The huge sum raised based on a non-technical whitepaper which fails to show how any of their promises will be achieved has seemingly worried some ethereum traders, somewhat turning sentiment, at least in the short term.
But, there may be other reasons too. The overall digital currencies market seems currently unsure of which way to go, with some traders expecting a period of consolidation before any significant movement.
That might be because it’s summer, so traders too may be enjoying a holiday down the beach somewhere, perhaps rewarding themselves with the eth profits they’ve made.
Sell in May and go away as they say, but there’s still plenty going on, so we’ll see for how long traders will actually stay away and how long this consolidation period – if that’s indeed what it is – will last.