The ethereum price dropped by more than 10 percent against the US Dollar at the beginning of the week, creating a new low of 2018.
The ETH/USD has been on the decline throughout the year, similar to other major coins such as bitcoin, ripple, and litecoin. During the time of writing, the two have gone through a 78 percent decline from its all-time high above 1400 fiat. The past day has seen strong selling sentiment with a significant drop of more than 9.5 percent.
Ethereum, being a dApp platform is ultimately grounded on the success of its derivate platforms. Even though there is not one factor responsible for this, it cannot be ignored that most of the Ethereum-based platforms have failed in 2018.
On the other hand, a stronger dollar could be the likely cause for the bearish sentiment in the crypto market. The recovery has created new monthly highs by stepping on Turkey’s currency crisis, ultimately driving the value of almost all the high-volumed mainstream assets, such as gold and the euro down.
Presently, the ETH/USD is trading towards 275-fiat, the November 2017’s low that influenced the bull run towards the pair all-time high. If the area can be tested, it could initiate a strong buying sentiment, enabling it to retest 395 fiats in medium-term. But a breakout towards the downside could drive the ETH/USD value to as low as early 200s.