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Why did Ethereum [ETH] drop to $450 yesterday? Will it go down again?

Aditya Dey

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Why Ethereum dropped yesterday? Where is it heading?
Source: Flickr

Ethereum [ETH] had peaked to $1419 and then suffered a drop by almost 50% within 4 days dropping to $757 momentarily before going back up. That was on January 13th, 2018 when the markets were extremely volatile with fresh hands coming into play with all the hype and media coverage.

Analysts believe, that the market now has gotten rid of a major chunk of weak hands which make it so tender. Yesterday, 18th March 2018, when Ethereum dropped dramatically the question was, who sold them Ethers? In the past 13 days, Ethereum has gone from trading comfortably at $866 to yesterday’s $450 level.



In an image shared yesterday by Wilhelm on Twitter

In an image shared yesterday by Wilhelm on Twitter

Wilhelm a community manager at SantimentFeed shared an image on Twitter suggesting the possibility of ETH being dumped/moved by major tokens including EOS, Sirin, Civic, etc. Viktor Skibitsky, a developer from Moscow says,

“Big rumors of major tokens dumping ETH. Regulatory concerns? or no one like ETH anymore? A lot of them like TRON will eventually move away from ETH so it is possible to see a further slump in ETH soon”

With people suspecting EOS as the major dumper yesterday, there was some support from the EOS community, for example, EOS Evangelist, an EOS Twitter “evangelist” says,

“The whole crypto market has been dumping since the tail-end of December and y’all are trying to make inferences with no proof. LOL…. You’re FUDing $EOS without demonstrating any knowledge about what’s being developed.”

Iosif Dzhugashvili an EOS skeptic says,

“I get it. FUD is the general counter argument to criticisms of your beloved project. Unfortunately DPoS has the perfect description in the name. Maybe could call it a steeming PoS to be even more accurate. Just spitballin’ here.”

Wilhelm on Twitter

Wilhelm on Twitter

Wilhelm shared another image of the alleged ETH dump

Wilhelm shared another image of the alleged ETH dump by EOS

People started equating the sell-off to Mt.Gox’s Bitcoin fiasco which allegedly influenced the market.

Sunny Singh, a Systems Engineer at Calix says,

“Shouldn’t this amount of Eth not be allowed to be dumped on an exchange? But have a otc or auction. This is the same as Mt Gox”

Henrik Ask, another crypto enthusiast says,

“But EOS gets 15k – 18k ETH every 24H. 50k Sounds like a small amount compared to total ETH That EOS hold…”

David Harden, a part-time VC and Bitcoin enthusiast took swipe at the people mentioning EOS was to blame and says,

“EOS has raised 1.5B in $ETH. This isn’t even a rounding error. What are you on about?”

Although all eyes were on how EOS influenced the Ethereum fall, the strong “HODLers” say that is is possible that EOS had nothing to do with the ETH dip yesterday and in fact this news just acted as a catalyst and created a domino effect for other immature ICOs to cash out to Fiat.

Irrespective of anyone influencing the Ethereum prices yesterday, analysts believe that ICOs hold a huge amount of ETH currently and a fear among that group (especially the weaker fake ICOs) could lead to an ETH sell-off. Although there have been a lot of fake projects the majority of ICOs who have raised a big amount of money have a good tech team and a good philosophical backing.

Mick Nebert, a Bitcoin miner from Zagreb says,

“Even if the fake ICOs start selling their shit ETH it wouldn’t affect the prices. The only problem is if bigger projects start dumping. I don’t see it happening anytime soon though with the market bouncing back again. It’s foolish for them to sell so low”

Ethereum [ETH] trading above $550 at press time

Ethereum [ETH] trading above $550 at press time

At press time, ETH was trading at $550 to a token showing a massive spike in value in the past three hours when the price was just at $515. Analysts believe that the G20 news has acted wonderfully and markets should be getting ready for a bull run. The sentiments are positive and markets look bullish.





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Aditya Dey is a full-time member of the AMBCrypto's News Reporting team. He is currently pursuing Economics at O. P Jindal Global University. Researching about Blockchain, its technology, and the cryptocurrency space is his passion. He currently does not hold any value in any cryptocurrency or its projects.

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Ethereum

Grayscale Investments: Ethereum Trust [ETHE] receives FINRA approval for public quotation on OTC markets

Priya

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Grayscale Investments: Ethereum Trust [ETHE] receives FINRA approval for public quotation on OTC markets
Source: Unsplash

Grayscale Investments, a digital asset management firm, made an announcement with regard to the second largest cryptocurrency in the market, Ethereum. The platform stated that the Financial Industry Regulatory Authority [FINRA] approved its Ethereum Trust, ETHE, making it the third publicly quoted investment product. The other two publicly quoted investment products are Grayscale Bitcoin Trust [OTCQX: GBTC] and Grayscale Ethereum Classic Trust [OTCQX: ETCG].

Grayscale Investments stated on Twitter,

“Our team continues to bring new opportunities for investors to gain exposure to digital currencies. We’re pleased to share that Grayscale Ethereum Trust received FINRA approval for a public quotation on @OTCMarkets under symbol: $ETHE* gryscl.co/2M4wVER (1/2)”

In a blog post, the platform stated that each Share of ETHE would be equivalent to 0.09662399 Ethereum, as of 30th April 2019. Further, the asset management firm also stated that the Ethereum in each share would decrease over a period of time as  ETHE would not “generate income” and the Ethereum would be “regularly distributed” to clear-out expenses.

It further stated,



“There will be no trading volume in the Shares’ public quotation until the Shares are DTC eligible, which ETHE is expected to receive soon. Investors will be able to find current financial disclosure and Real-Time Level 2 quotes for Shares of ETHE on the OTC Markets website once trading commences. “

The ‘announcement of this announcement’ was made yesterday by Barry Silbert, the CEO of Digital Currency Group, thereby creating a buzz. Barry Silbert had stated on Twitter,

“Follow @GrayscaleInvest for some big news at 9 am NY time tomorrow. Announcing an announcement (yeah, that’s how I roll)”

To add on, the firm had recently launched the #DropGold initiative, with its main focus being prompting investors to invest in the digital gold, Bitcoin. The firm had stated,

“Grayscale is again pushing the envelope for traditional investors with a clear message: it’s time to #DropGold. […] Grayscale is again pushing the envelope for traditional investors with a clear message: it’s time to #DropGold.





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