Ethereum fell another 7% today to a recent low of $297 as its ratio against bitcoin drops below the 0.05 support line to 0.047 at the time of writing.
Its volumes are somewhat down to $1.7 billion, with a proper dollar pair at 15th position, so breaching today the stupendously strong support line of $300.
It is the first time it does so in many months since late August 2017, with eth spending some nine weeks at a price of $300 back then, yet now it has fallen in mere days.
The reason remains unclear. There has been no new event as far as we are aware. Suggesting it might be simply traders trading.
Ancillary factors might be ICOs seemingly cashing out, a strong dollar, and a relatively high inflation rate of 7% for eth, but such factors were present during its run up to $1,420.
Making it slightly puzzling as to why eth specifically is proportionally seeing a bigger decline in price recently.
Arguably, the delay of Casper might be a factor. The market was expecting its imminent release until a change in design to make sharding development easier.
Yet considering both Casper and sharding would be a significant breakthrough, you’d think a pricing in of their eventual release would cancel any short term expectation.
Eth’s Google searches have further increased slightly in US to 14 from 10, with its transaction levels remaining at a robust 700,000, nearly triple that of bitcoin and more than any other crypto.
It may thus perhaps be more subdued sentiment than any logical analysis, but just when you thought this couldn’t go lower, it does.
Making it very similar to bitcoin 2015, but whether that will repeat for eth or otherwise remains to be seen as the ecosystem faces what is now probably its worst bear market since ethereum’s invention in 2015.