ETH/USD: Crashes and then Rebounds, what does it mean?

ETH/USD: Crashes and then Rebounds, what does it mean?

Ethereum (ETH) or any coin, in general, is pretty interesting to monitor because you never really know where it’s going to go. Early Tuesday morning, Ethereum (ETH) prices started to fall and hover above $200 after which it took a hit. The hit took the price down to around $178, the first time in over a month and a half that the coin went under $200.

So, what happened?

Since yesterday, Ethereum (ETH) has been nose diving and heading for lower prices. I think this led to a bearish market and people started to sell their Ether (ETH). In the past, Ethereum (ETH) has had many crashes and booms that make it so attractive for investors to short the currency. Since there’s a widespread culture on shorting Ethereum (ETH), the price volatility is quite high. This volatility is also based upon rumors and can be affected by a simple post on 4Chan.

Picture1 ETH/USD: Crashes and then Rebounds, what does it mean?

 

Ethereum (ETH) first dipped under 200 after which it recovered quickly.

As panic set in early Tuesday morning, investors started selling Bitcoin as well as Ethereum (ETH). This mass scale has now led to both falling much lower. Ethereum (ETH) went down all the way to $178 and people started to purchase the currency again.

Late Tuesday, the currency has now completely recovered and is hovering at $200, an albeit low but average low price for Ethereum (ETH). That’s primarily because Ethereum (ETH) was at a low price and investors are always willing to buy Ether at a lower rate. If you did buy at this time, you were pretty lucky with your investment.

What’s the reason behind this?

Every time that you might hear about a crash in Ethereum (ETH), the price always seems to rebound. I think that’s because of the price at which new users start and buy Ether (ETH). Whenever the price decreases, there’s a wave of demand which then brings the price up again. This time, it was pretty beneficial for investors looking to buy into Ethereum (ETH) because it hasn’t fallen below $200 in a long while.

Maybe that’s a reason why Ethereum (ETH) has been so volatile in the recent months. Fortunately for investors, the currency still holds a lot of promise in the future. This short panic crash is one of the many proofs that Ethereum (ETH) will hold the test of time. This is one of the best times to invest in Ethereum (ETH) because it’s hovering around $200 and we’re waiting for it to rise back to $280.

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About Article Author

Martina Kelowsky
Martina Kelowsky

Currently working on her Master Degree in Economics & Computer Science she lives in Russia. She is a Bitcoin Enthusiast since 2013 and Investor in various ICO since 2014. She aims to democratize a future where money is decentralized and transaction anonymous.

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