17 Jul Ethereum Price Plunges 20% on Sunday, Then Recoups
The price of the cryptocurrency and Blockchain platform Ethereum continued to suffer losses as an effect of worries about Bitcoin’s potential split that’s approaching August 1. Bitcoin price has also been falling lately, although not in such a dramatic manner.
On Sunday, it plunged more than 20 percent. Although Monday morning it recouped most of its weekend losses, investors’ concerns clearly remain intact.
The currency has had a remarkable year, having risen several thousand percent since January to a peak of $420 on June 12. Many investors who bought in at that time are facing the harsh reality of cryptocurrency volatility, as the currency hit a midday low of $130 around 9 a.m. Sunday morning. This is the lowest price the currency has seen since May 27.
Lots of questions have surrounded the lengthy decline since the peak last month. Most analysts believe the coming concerns over Bitcoin’s potential split have led to a massive selloff by large stakeholders, awaiting the fallout from the August 1 deadline.
The other contributing factor may be the potential for a large sell off by other initial coin offerings (ICO’s) which had amassed large amounts of Ethereum in efforts to raise funds. The ICO market has exploded, with nearly half of the year’s $1.2 bln raised having occurred in the past 30 days.
Many, though, are still bullish on the cryptocurrency, blaming other market forces rather than the fundamentals for the crash.