Ethereum’s price has turned downwards in the past few days, falling from around $230 to below $180 before slightly recovering to $181 at the time of writing.
Its trading volumes have dived too, just above half a billion, down from an all-time high of $3.2 billion only a few days ago when new membership of the Ethereum Enterprise Alliance was announced.
Since then, however, there have been a number of vulnerabilities exploited, with a bug in Parity’s multisig leading to millions in losses.
Meanwhile, tokens have had their own exploits, so seemingly turning sentiment from a brief bull run a few days ago to a continuation of the July bear-trend.
Ethereum, however, is hardly alone in falling down today as nearly all digital currencies, including bitcoin, have turned into red this Friday.
It may be a weekly cycle, but the now nearly imminent bitcoin hardfork may have played a role as yesterday most digital currencies were down while bitcoin rose some 10%.
The likely reason might be because traders and speculators would probably want to get their hands on Bitcoin Cash, so leaving other digital currencies to focus on the bitcoin show.
Not least because they may be trying to profit from expected high volatility during the first week of August when Bitcoin Cash goes live as the market may then try to determine the price of the two currencies and their inter-relationship.
Today, however, both bitcoin and Bitcoin Cash are joining other currencies into the red territory, which may suggest some flight to fiat.
However, bitcoin’s market share has now risen above 50% for the first time in many months as the hardfork returns some optimism into the long-term viability of the currency.
As such, the currency has recently been rising more than others while falling less, so regaining the spotlight, at least for now. Which may mean ethereum will be taking the back-seat for some time dependent on how August the 1st develops.
If the two currencies both continue to rise, then they may dominate discussion, but the initial confusion might lower the combined price, at least temporarily, which could give ethereum an opening.
However, ethereum has been on a bear trend for some time after its incredible spring, so the currency may need to go through its own cycle regardless of what bitcoin does.