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The Ethereum Crash is Not Over

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The Ethereum crash looks far from over. A few days ago, Ethereum crashed to a new milestone when it dipped to levels below the much dreaded $200 value. Every crypto enthusiast was confident that the King of Smart contracts would continue to hold its own and possibly recover to levels around $400. But that has not come to be as the crypto markets are still stagnant at levels of a total market capitalization of $195.4 Billion and at the moment of writing this, ETH is somewhat stable at $192.

As a result, Bitcoin (BTC) has even increased its dominance to 56% as I write. On the other hand, Ethereum’s dominance is currently at 10% after dropping by a few points for its usual dominance in the markets of between 14 and 18%.

Why Ethereum’s Crash is not Over

To begin with, the rumors that the ICOs from last year are selling the Ethereum they raised is valid. Looking at the EOS project, the team managed to sell off all their Ethereum before they launched their mainnet on the 2nd of June. Further checking the crypto markets, we find that ETH was relatively well priced at around $600 back then. Using this price as a reference, the digital asset had dropped an astounding 57% from its all-time high of $1,400. Therefore, the EOS team was justified in cashing out before it dipped further.

It is with this background that the probability is high for more ETH to be sold in the markets by ICOs still holding bags of it. Common trading sense indicates that when a digital asset is spiraling out of control in the markets, the best option is to opt for BTC or the controversial Tether (USDT) to hedge against further losses.

The number of ICOs still holding ETH are still significant enough to cause a further decline of the digital asset if they decided to systematically trade it for Bitcoin or any of the other stabler digital assets such as Stellar (XLM).

Secondly, and even without the ICOs selling their Ethereum, the crypto markets are in a very fragile state. The bear market that was kick-started by regulatory fears from South Korea and China back in February has shown no signs of abating even with proof positive evidence of institutional investors getting into crypto investing.

Wall Street even has plans of offering Ethereum futures contracts before the end of the year. This should have led to a positive knee-jerk reaction for Ethereum in the markets.

The mood and feel are that we are headed for tougher times this September, especially with the pending SEC decision on the CBOE sponsored ETF on the 30th of September. Global Coin Report had advised in an earlier post that traders tread carefully between now and the D-Day that is September 30th.

What can Save Ethereum?

The answer to this question is simple. The markets need to turn around before it gets worse for Ethereum. Crypto traders and the institutional investors need to start buying and pushing for the massive adoption of cryptocurrencies for day to day commerce such as paying for coffee. That is the only way that demand for all digital assets will go up, thus causing a ripple effect that will raise the price of ETH.

A second option would be for the Ethereum core developers to solve the scalability issues on the network to enable for faster transaction speeds as well as cheaper transactions. This then will prevent DApp creators and users from moving to more efficient platforms such as Tron (TRX) and Zilliqa. The network congestion on Ethereum is the sole reason savvy investors continue to short ETH in the markets.

In conclusion, the short-term future for Ethereum in the crypto markets looks a bit bleak in the current bear market coupled with the possibility of ICOs deciding to sell all their ETH before it is too late. That said, it might be time for ETH HODLers to reconsider their investment strategy moving forward as the Ethereum crash looks far from over.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Investors Beware: Another Large Bitcoin Crash Might Be Coming

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The crypto prices have surged quite high in the last few months. Of course, their progress is nowhere near the one seen in 2017, but they appear to be getting there, one day at the time. However, things might not be as simple as that, and according to recent performance — it is more than possible that a major Bitcoin crash is incoming.

The fact is that cryptos saw a massive amount of growth in a very short period. Bitcoin itself more than doubled its price in only two months. Now, the rally is starting to crash in on itself, and the coin is already about $1,000 lower than last week. If such development does come to pass, a lot of people will experience quite large losses, although experienced investors might find some opportunities, and leverage in order to enhance their holdings’ long-term value.

For example, Bitcoin dominance is expected to crash very quickly, which will work in favor of quite a lot of altcoins. While this does not seem to be the best time to invest in BTC, altcoins are another story, and diversifying a portfolio now might end up being very profitable in days to come.

Bitcoin behavior mirrors the pre-bear market situation

The crash that analysts are predicting right now comes as a direct consequence of all the hype that has been building up in…

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Altcoins

Top 3 Coins to Buy Before They Go Big

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Crypto bulls are back, that much is clear. The long-lasting, harsh crypto winter is gone, and the new era in digital currency sector opens up some rather interesting opportunities. With many more bull runs expected to come in months ahead, a lot of coins are likely to blow up and maybe even hit new all-time highs, although that still remains purely theoretical.

On the other hand, the fact is that numerous coins are seeing prices that were not achieved since early 2018, and the overall momentum remains bullish. With that in mind, even if new records do not come for a very long time — chances are that many of the coins will blow up enough for investors to see some serious gains in months to come. As a result, investing in some of these coins now might be a very profitable decision, for those who have the patience to wait a few months. Here are some of the projects believed to have the greatest potential to go big in the second half of 2019 and beyond.

1. TRON (TRX)

Putting TRON on the list should not really surprise anyone, as the project constantly comes up with new project updates, partnerships, and alike. It also constantly breaks records, as is becoming one of the biggest players in the dApp and smart contract development sector.

In the past few…

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Blogs

Can Crypto Credit Cards Disrupt the Fight Against Financial Crime?

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It is commonly known that the world of finances has the biggest problem with the crime of all existing industries around the world. It has been so throughout history. While the financial world has evolved, so did the criminal activities, and they continue to be an issue. With the arrival of cryptocurrencies, many were hoping that financial crime might be disrupted. However, for now, at least, it appears that cryptos themselves cannot find a way to resolve issues such as international money laundering.

In fact, when it comes to money laundering, the crypto sector appears to be the weakest link, especially because of the nature of digital currencies. The anonymity that cryptos are being praised for means that anyone can get a payment from an unknown source from anywhere in the world. This method can then be used for financing drug trafficking, cyberattacks, terrorists, and more.

Until recently, it was not easy for bad actors to make use of cryptocurrencies obtained for illegal purposes. The number of merchants willing to accept the coins was low, and criminals were forced to find a way to exchange crypto into fiat currencies. However, this came with a set of issues, such as taking foreign exchange risks and then sending the money through wallets and exchanges to a banking system that would allow withdrawal. The banking account was the biggest obstacle here,…

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