Ethereum Price Drops as Major Cryptocurrencies Suffer Overnight Declines

The price for the native cryptocurrency of the Ethereum blockchain network, Ether, has suddenly declined by 14 percent. This comes as the cryptocurrency market as a whole also saw a drop with major cryptocurrencies such as Bitcoin, Ripple and Bitcoin Cash dropping by 2 to 6 percentage points.

In a very sudden move, the price of Ether declined from $574 to $492, representing more than 14 percent decline. Even though Ether recovered slightly from the $492 level by 6 percent, it remains down around 10 percent from its earlier $574 position.

According to some analysts, the drop of ETH is possibly as a result of the dump of Ether by initial coin offerings (ICOs) and blockchain projects.

“Wondering who just rage-dumped $ETH on Bitfinex. Didn’t $EOS still have a lot of ETH and they were using Finex before,” speculated WhalePanda, a site that offers analysis on digital currencies.

The Bitcoin price has also dropped below the $7,200 level and is possibly heading towards the $6,000 level. Similarly, other major cryptocurrencies such as EOS, Bitcoin Cash, and Ripple have suffered declines of up to 8 percentage points.

In comparison to other major cryptocurrencies and tokens, Bitcoin has been able to maintain some flexibility in the past week even though the Bitcoin price has dropped significantly against the US dollar from $8,600 to $7,140.

A crypto analyst, Wily Woo, believe that considering several indicators, the Bitcoin price will possibly decline below $6,000 to $5,700 before it will recover again.

“So, in summary, my best guess… slowish bleed down to $6800… then a steeper slide to $5700, then a leveling out of the drop… then a flat zone. This is an educated guess based on volume profile and fundamental data framing the rate of movement,” said Woo.