What’s happening with Ethereum? It’s dropping, that’s what. What happened to the price of Ethereum? Is it going to bounce back up again? How long is this going to last? These are all good questions and ones I’m sure many investors are asking themselves now. In this article, we explain why Ethereum is dropping and whether or not we expect it to rise again soon.

Ethereum dropped by nearly 50% at one point.

The price of Ethereum has dropped significantly in recent weeks, declining from around $1,300 at the start of the year to just over $100 at the time of writing. Initial Coin Offerings (ICOs) are a popular way for blockchain startups to raise money through token sales by this platform bitcoin-champion.com. A company creates tokens that can be used on its platform and then sells them for fiat currency. By selling these tokens, companies raise funds that they can use to build their product or service.

Ethereum has dropped by nearly 50% at one point. The price of Ethereum is down around 10% today at the time of writing, but it’s still been a rollercoaster ride for investors who hoped to cash in on this new technology. Ethereum rose by more than 2,000% throughout 2017 and peaked at $1,400 per Ether in January 2018, so you have to admit that a 50% drop is pretty significant by comparison.

However, this isn’t necessarily bad news for Ethereum’s future. For starters, people buy into this cryptocurrency with real money. If no one wants to buy into something because they think it’s worthless or too risky, then there won’t be any demand for it whatsoever and thus no reason for supply.

ICOs, and their ability to sell Ethereum.

However, these companies cannot keep any proceeds from their ICOs. They must convert all cryptocurrencies raised into fiat currency to pay staff salaries, rent offices, and buy equipment needed for development purposes. This means that as more ICOs sell off cryptocurrencies such as Ethereum during fundraising periods, there will be less demand in the marketplace.

As well as less supply from miners who receive rewards through mining blocks containing Ethereum transactions with newly added transaction data known as “gas” fees paid by users making transfers on its network via smart contracts executed via consensus algorithms.

The more ICOs that sell, the less demand for Ethereum.

An “ICO” initial coin offering is a way to raise money. It’s unlike an IPO, a form of public sale where investors buy company shares. An ICO usually involves selling crypto tokens as part of an effort to fund a project or startup. The more ICOs that sell, the less demand for Ethereum and thus lower prices.

The result is a price drop in Ethereum. The good news is that the price drop is temporary, and the value of Ethereum may rise again shortly. However, it’s impossible to say whether or not this will happen or how long it’ll take. Suppose you’re planning on buying into an ICO (or any other event or product that uses ETH). In that case, you should wait until after they’ve been completed before buying as much ETH as you can afford to risk losing if there are further downward price movements.

When ICOs sell their Ether holdings, Ether’s market price can dramatically affect its market price. These sales are usually made at a fraction of what they bought to raise money for their projects. If you purchased Ether after an ICO sale, you might pay too much. As a result of all this selling pressure on ETH during 2018, we’ve seen its price dip from USD 1,400 per ETH down closer to USD 100 per ETH.

Will Ethereum rise again?

Yes, Ethereum will rise again. It’s a good platform for smart contracts and ICOs. It’s also a great platform for other uses, like decentralised apps or apps, which are apps that run on the blockchain rather than a central server.


Hopefully, this article has given you insight into what’s going on with Ethereum. If you’re looking to trade in cryptocurrencies, it’s always good to use trading software. It allows you to trade fastly.