By Gaurav S. Iyer, IFC Published : October 23, 2017
Trading screens were filled with flashing numbers this morning, but they were exactly the wrong color—there was just red, red, red everywhere you looked. The bloodbath extended to every cryptocurrency on the top 10 list, from Bitcoin on down to Monero.
Ethereum was particularly damaged.
It fell by more than 8.6% on the weekend, which brought the currency’s value below the $300.00 level one more time. This threshold has plagued ETH ever since China banned cryptocurrency trading in September.
At the time, ETH was flirting with the $400.00 level. Getting back to that level is proving difficult, particularly as the currency faces both external and internal headwinds.
For instance, investors ramped up support for Ethereum prices before its hard fork last week. But then, in the days after the fork, investors reversed those gains because of shakiness in the code. That’s one example of how internal headwinds can manifest as Ethereum news.
On a broader scale, there’s always the risk of regulatory upheaval. As it happened in China, where cryptocurrency trading was banned seemingly out of nowhere, so too can it happen in Russia or the United States.
That said, a major Russian bank—the biggest Russian bank, in fact—joined the Ethereum Enterprise Alliance. So it doesn’t appear likely that Russia will burn its relationships with blockchain technology providers.
There are now 150 members of the consortium, which should help Ethereum accelerate its adoption in business-to-business functions.
Hopefully, investors will take notice of these developments soon. If not, we might have to stretch the timeline on our Ethereum price forecast for 2018.
In any case, the Ethereum to USD exchange rate fell 4.07% to $283.93. At the same time, the Ethereum to Bitcoin rate dropped 3.29% 0.04904970 BTC.
Daily Ethereum Chart
The most prominent trading exchange was Bitfinex. Investors swapped $37.87 million worth of ETH tokens on that exchange, or 9.93% of total trading volumes. If that number seems small, it’s only because Ethereum has found a wide base of geographical support.
Other than Bitcoin, Ethereum is probably the most insulated from geographical risk. Other cryptocurrencies have as much as 70% of their trading volumes sourced from one country, which means that a regulatory shift in that nation would devastate the currency’s liquidity. As such, we hold steady on our $1,000 Ethereum price forecast for 2018.