Rise of the Phoenix: Ethereum prices recover to $240 after crash.

Rise of the Phoenix: Ethereum prices recover to $240 after crash.

After Ethereum took a nose dive and broke the hearts of all cryptocurrency enthusiasts, the currency is now on its way to recovery.

Quite recently, on June 25th, rumours about Ethereum founder Vitalik Buterin’s death rose on the popular online forum 4Chan. The post read ‘Vitalik Buterin confirmed dead. Insiders unloading ETH’. The price went from around $330 to $280, after which it recovered for the rest of the day when Vitalik was proved to be alive and well.

This event pushed Ethereum traders to become even more reactive. After a multi-million dollar trade, Ethereum prices on GDAX went from $350 to around $0.10, after which the platform was shut down due to very low price trades. Some traders complained about losses of over $5000.

This loss shook up the traders and people started to lose confidence in Ethereum, many of them abandoning the currency.

The Aftermath of the Crash

The Ethereum crash didn’t just affect Ethereum, it took a lot of crypto currencies down with it. Smaller digital coins or cryptocurrencies slowly lost in value after the crash. Widely known cryptocurrency Bitcoin also suffered as investors were thinking that the situation resembled a bubble. In the past day, however, Ethereum and most currencies took a major rise in value, with Ethereum climbing back to $240.

According to many industry experts, the Ethereum crash was a correction due to its exponential rise in price. Essentially, the currency was overvalued due to increasing ICOs and tokens used to raise funds.

Since Monday the currency is growing fast and it’s probably due to the Indian government joining the Enterprise Ethereum Alliance. India wasn’t the only one joining in, Mastercard also joined the famous EEA. This positive step into cryptocurrency is one of the main factors why Ethereum has been gaining in value since Monday. Hopefully, the currency is able to return above $300, just like it was since May.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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