Opinion

Ethereum falls lower and lower. Why?

Ethereum, the second most popular coin, falls lower and lower. A week ago Ethereum was trading at $540,62. But today the price of this cryptocurrency is $415,93 (-10% for a 24-hour period and – 23% for a week).

Certainly, the rumours about producing Ethereum ASIC miners by Bitmain company affected the value of Ethereum.

But there may be another reason of reducing Ethereum’s price:

Nowadays a lot of startups appear all over the world. They launch ICO campaigns, in which Ethereum is accepted for buying ICO tokens. Then, after receiving Ethereum during the ICO, the owners of ICO tokens deposite Ethereum to different cryptocurrency exchanges, and Ethereum’s price begins to fall down.

For example, after EOS crowdsale, EOS owner deposited 417k ETH to some  cryptocurrency exchanges including Bitfinex. Ethereum price after that fell by 14%.