Ethereum, the second cryptocurrency according to market cap, has dipped below the $300 mark as the market is going through a major price crash. All of the big ten coins have seen a significant decline in prices in the last 24 hours.
Ethereum Drops 17 Percent
Ethereum hit its lowest price for this year on Monday afternoon UTC. The last time ETH was valued below $300 was in the early days of November in 2017. At the time of writing, ETH lost more than 17 percent of its price, totaling up to a 60 percent decline for 2018.
One of the reasons cited for ETH’s massive price drop is the cynicism of ICO investors. The market is flooded by ICO exit scams and the investments that have been lost in these pump and dump schemes have generated negative feelings in the ETH market.
Ethereum is the platform of choice for ICO projects, and this popularity has made the token skyrocket to $1,000 in February 2018. During that period, BTC was trading under $6,000. But the huge number of ICO projects that drove up the price and interest in ETH was also the reason for its downfall as they started to cash out to make ends meet. Because of these factors ETH has begun declining. Regarding the matter, Biswas Das, Capital chief at BloomWater, had to say the following:
“These startups are raising a lot of funds, but they don’t have treasury management or enough cash management experience, so they’re selling too early and causing a lot of pressure in the market. It was fine last year, but right now, the market is so fragile that it causes a lot of pressure.”
The current bearish movement of the market most likely made the problem worse for ETH. Seeing as not all projects have finished cashing out their earnings, experts predict an even more somber future for ETH investors, as the prices will go down even more.
ETH is currently trading at $267.96 USD, having a market cap of $27,148,840,828 USD, according to data provided by CoinMarketCap.