ETHEREUM PRICE FALLS AS TRADERS ABANDON ICO PROJECTS
It has been a difficult month for Ether, the currency of the Ethereum network. Month-to-date, the price of Ether has dropped by more than 40%. It is now trading at $277, which is slightly higher than yesterday’s low of $240. This was the lowest level since November last year.
Price drops have also been experienced across the crypto sector with Bitcoin plummeting to its lowest level since June and Litecoin falling to its lowest level since August last year. In total, the crypto market cap has dropped to about $190 billion. At its peak early this year, the combined market cap was more than $850 billion.
The current decline on the price of cryptocurrencies has primarily been caused by the ICO market. A report by crypto research company, Cinnober, said that the hundreds of companies that had raised billions of dollars in ICOs were cashing in by selling off the tokens. This has in turn led to an increased supply, which leads to lower prices. It also reduces the demand for ICO projects that are currently under development as traders avoid the market.
The ETH/USD pair created a double top in February when it reached an all-time high of $1374. Since then, the pair has been falling, reaching a year-to-date low of $245 yesterday. The pair’s price is below the 50 and 100-day moving average while its RSI is below the oversold level of 30. The pair is likely to continue falling and will likely test the support of $200 as traders dump Ethereum.