ETHEREUM DROPS AFTER GOOGLE HALTS ADS ON CRYPTOCURRENCIES
The Price of ethereum fell by more than 10% after Google announced that it would ban cryptocurrency related adverts on its platforms. The announcement came a month after Facebook, the second largest advertiser in the world, announced a similar move.
In a statement, the company said that starting from June, it will stop offering ads on certain financial products including cryptocurrency exchanges, Initial Coin Offerings (ICOs), and binary options.
Ethereum was more affected than other cryptocurrencies because of its connection with ICOs. Most ICOs are based on the technology that powers ethereum. It is currently trading at $615.
Without Google, it will be difficult for startups offering ICOs to market their products online. This is because Google is by far the largest advertiser in the world, reaching billions of people every month.
The news about Google came a few hours after one of the most respected professionals in finance said that the bubble on bitcoin was about to burst. In an interview with CNBC, Stefan Hofrichter, the head of global economics for Allianz Global Investors argued that the bubble on bitcoin and other cryptocurrencies will soon burst. The same sentiment was shared earlier this week by John Oliver, a popular comedian from the United States.
As shown below, the ETH/USD pair has been declining since January, when it peaked at $1373. The pair’s RSI is currently at 30, which is an indication that it is oversold. As such, in the short term, the pair could try to recover as short traders take profits.