Ethereum has capitulated below $150 at the time of writing, down some 65% from its all-time high of $420 reached only last month.
The currency has been on a bear market since, but until yesterday, price falls were usually followed by some small bounces.
Yesterday, however, saw incredible selling-pressure with no buyer in sight, sending the price straight down just above $140 at the time of publishing.
The main reason is probably concerns over a bitcoin chain-split that will likely occur on August 1st as big blockers have launched a new client called BitcoinABC.
That client will follow the Bitcoin Unlimited approach of increasing on-chain scalability by splitting the blockchain, so creating its own network, not much different than the ETH and ETC split last year.
Traders, therefore, are seemingly concerned about a period of high volatility as the market passes judgment on the value of the two bitcoins.
But its not very clear why ethereum’s price is seemingly being affected much more than bitcoin’s price by what appears to be bitcoin’s troubles, very much in contrast to last year when bitcoin went on a bull run while ethereum was dealing with its chain-split.
As such, selling pressure from Mega ICOs that have raised more than a billion dollars last month may be an added explanation, especially as the downturn seemingly accelerated after Tezos ended their ICO which raised some 360,000 eth that has seemingly not yet moved.
Another explanation may simply be the bull and bear cycle, with the rest used as an excuse for the price movements, as it may simply be the case after a high rise investors started taking profits, so turning sentiment downwards.
The question in everyone’s mind is for how long and how low, a question to which only time can give the answer as sentiment changes can often be quick and are unpredictable.
But, eventually, the dust should settle, with the picture becoming clearer and confidence potentially returning once more.