After what appeared to be a brief period of consolidation within the range of $250-$280, ethereum moved lower today, breaking the support level of $250 to fall to around $240 at the time of writing.
The currency has been in a downwards trend for some weeks after a sharp sell off at $420 which was followed some days later by a large sell-off at GDAX that temporarily sent ethereum’s price to as low as ten cent.
GDAX later stated they are to refund those who lost funds, but a spate of ICOs that raised hundreds of millions seemingly added to the bearish sentiment, with the market price moving downwards.
Nearly all other digital currencies are following with not one green in the top 50, sending their total market cap below $100 billion, currently standing at $96 billion.
The market appears hesitant currently, probably because of the fast approaching August the 1st deadline when bitcoin is finally to decide one way or another their more than two years long scalability debate.
Miners have seemingly decided to activate segwit in a roundabout way by adopting an upgrade called segwit2x, which basically translates to segwit now then a hardfork maybe later.
But neither side seems happy with it as both sides continue to campaign against each other, making the atmosphere in bitcoin unpleasant to say the least.
At the same time, everyone is waiting for the segwit2x client to be launched and see whether miners do actually adopt it and do implement segwit as well as see how others react.
That should happen in the next few days, with the outcome for ethereum unpredictable at this stage. If it all goes smoothly, it may benefit from the ending of uncertainty and perhaps from bitcoin’s rise. If it all becomes a mess, ethereum may be seen as a safe heaven or bitcoin might drag it down.
Miners are usually short-term minded as their hardware deprecates very quickly, so they’ll probably try and pre-empt August the 1st, but clarity should be gained in the next few days.
Until then, the market seems to be drifting downwards as traders enjoy their gains and the summer holidays.