Until yesterday, Ethereum prices were holding up (better than most) against the raging tide of pessimism. But the dam broke on Tuesday, causing ETH prices to fall 25.17% against the U.S. dollar.
This brought the Ethereum to USD rate down to $831.27.
While novice investors are fleeing the market at this sudden crash, old hands greeted the retracement with open arms.
“Having been in this market since the beginning (yes 2014), I have seen many corrections and dip,” wrote one Reddit user. “Corrections help shake out weak hands and allow for a buy-in opportunity for stronger hands.” (Source: “This is a healthy correction – Newbies need not panic,” Reddit, January 16, 2018.)
It is true that the crypto market operates on some twisted tango—two steps forward, one step back—that keeps it moving higher. The one step backward is painful, of course, but it is considered necessary in order to maintain a robust market.
That being said, investors should look beyond the crash. There are a lot of developments occurring at the ground level, many of which I’d consider positive Ethereum news.
For example:
- Ethereum co-founder Vitalik Buterin maps out a proposal to upgrade initial coin offerings. (Source: “Ethereum Co-Founder Announces DAICO, a new ICO Fundraising Model,” CoinSquare, January 15, 2018.)
- BitConnect is shut down by Texas state authorities, validating concerns voiced by Vitalik Buterin. (Source: “BitConnect Shutters Crypto Exchange Site After Regulator Warnings,” CoinDesk, January 17, 2018.)
- A research paper finds that Ethereum optimizes its decentralization better than Bitcoin. (Source: “Decentralization in Bitcoin and Ethereum,” Hacking, Distributed, January 15, 2018.)
The reason I mention these developments is to remind you that today’s price movements won’t predict tomorrow’s price. What’s happening on the ground level is far more important. Keep that in mind whenever you’re trying to forecast any crypto, Ethereum included.
Analyst Take
I’m on the same page as Buterin, who says that 2018 “will be the year of action” for cryptocurrencies. This is partly why I believe in our $1,500 Ethereum price forecast for 2018.
Also Read: How To Buy & Sell Ethereum (ETH) Easily?
Source: Price Confidential
