Ethereum is back. From the far edges of the darkness, the price of the world’s number one altcoin and primary competitor to bitcoin is seemingly returning to glory in a slow, yet steady manner.
Bitcoin, Bitcoin, Bitcoin… What About Ethereum?
Everyone talks about what a rough time bitcoin has had over the last year. The currency, as we all know, was pushing $20,000 in late December 2017 before the new year arrived. The currency then began falling faster than anyone could have anticipated, and now sits in the mid-$6,000 range – nearly $14,000 less than where it stood just nine months ago.
But where’s Ethereum in all this mess? As the world’s second-largest cryptocurrency by market cap, Ethereum holds a rather prominent position in the cryptocurrency space. Many believe its technology and smart contracts capabilities makes it superior to bitcoin and think its future has barely been tapped. To some, Ethereum is the maker or breaker of the cryptocurrency arena, and they believe it has much to offer those who have remained loyal.
Dark Days for the Second-Largest Coin
But it’s rise to fame has also been marred with severe price drops and financial descent. Last year, at around the time when bitcoin was undergoing its massive swell, Ethereum was tagging along and incurring price jumps comparable to those of bitcoin. No, Ethereum never reached $20,000 as it was a smaller coin, but its percentages and value went up considerably. By the time December had rolled around, one ether coin was trading for nearly $1,400, and the market seemed ready for some solid growth.
But like bitcoin, Ethereum’s good fortune wouldn’t last. The currency began staggering as soon as January arrived, and before long, the currency had dropped by $400, then $600, then $900. Before long, the progress it had made over the past year was null and void, and at press time, Ethereum is only trading for about $207, and this is an improvement over where it was just last week. Overall, it’s estimated that Ethereum has lost approximately 85 percent of its value since last December. Bitcoin, on the other hand, has only lost about 70 percent.
Maybe Things Are Turning Around
Having said all this, how can it be stated that Ethereum is “on a roll” and potentially coming back from a dark place? For one thing, the price is up by nearly 14 percent – 13.40 percent, to be exact from just a few days ago. Analysts were certain that it was only a matter of time before $190 or less became an ugly reality for bitcoin’s biggest competitor, and for now, it appears that reality will have to wait.
Interestingly, bitcoin itself added more than three percent to its overall value and is now witnessing trading prices exceeding the $6,500 mark. While it’s hard not to get excited – this is about $300 more than where it stood just yesterday – one must remember that the currency (along with most forms of crypto) remains volatile and vulnerable to outside influence, and the price could drop at any moment as we saw in both August and July of this year.
Ethereum Is the Victim of a Sell-Off
Many startups and new business ventures relied heavily on ether tokens through initial coin offerings (ICOs). These companies offered new tokens to investors that could be used to purchase their services and/or products, but these tokens could only be purchased with ether coins. Now that most of these ICOs are complete, the companies are starting to cash out, which can only mean a massive sell-off for the coin. This has potentially worked to keep the price consistently down.
While bitcoin has enjoyed some returned success and experienced short-lived, yet noticeable bull runs over the past few months, Ethereum has seemingly remained in the gutter and continued to lose value, which makes today so significant for the coin.