The price of ETH appears to be free falling right now! Apologies for not writing for awhile, this is definitely a timely post.
With all the good news coming out about Ethereum over the past 2 weeks, how could the price be “tanking” like this?
What I think we’re seeing now is an over-reaction to the “Consensus / Blockchain Week” non-pump. (pump = big, quick increase in price)
There was an expectation that Blockchain Week would lead to a big increase of price, which it has in previous years. This year the prices across crypto remained stable during the conference and now are dipping heavily this week.
Right now ETH is at $583 on GDAX – down over 14% for the day, and almost 19% since Monday, ouch!
It’s not only ETH, it’s the entire crypto market –
Market sentiment changes quickly in crypto.
Since it’s still 90% “Retail” (aka. non-professionals) the market is incredibly emotional and tends to overreact. This is why we can have -20% days like today. It’s the same reason I’m predicting +20% days in the future.
Judging by the conversation online, my gut says this is actually a buying opportunity.
I’m not sure where the bottom of this movement is – my guess was the high $500s – but we could see lower $500s.
This feels like a “fake-out” – one last emotional downswing / final test before a huge bull run this summer.
I could be wrong, but I don’t think so. I’m a buyer right now. My gut has rewarded me in the past 🙂
I’m working on a ‘Blockchain Week’ post-mortem – it was an amazing experience. Met a lot of really interesting people at Ethereal, Consensus, and meetups. Learned some really cool new things. The ETH / blockchain ecosystem has never been more exciting.
More to come later.
I highly recommend reading this r/ethtrader post from DCinvestor – Catalysts for ETH Price Increase over the next 6-12 Months.
I think DCinvestor does a great job summarizing the major reasons why ETH is set to explode over the next year.