The Ethereum market has suffered considerably, as china clamped down on ICO’s being run in china. With one of the main functions of ether being the currency ideal for ICO’s, the markets lost a considerable number of investors simply because coin offerings were made illegal. The rumor mill has also gone into overdrive with many discussing possible bans to be imposed on trading on exchanges too.
As seen on the graph below prices did peak just over the $300 figure after the ban on ICO’s in china, emphasizing the momentum gained by bullish traders. Currently prices are at still at $293 on the road to recovery.
TO conclude, the Ethereum markets are still in a precarious position hovering at the $300 price point but frequently visiting figures lower then this point. While the ban imposed by china has hit the Ethereum ecosystem the hardest, with prices dropping from the $330 range earlier this week. Many analysts predict the $328-$330 figure being the catalyst for a short bull run. The figure must be broken in the short term within 7-10 days to prevent stagnation occurring. Current trends suggest a breaking the $275 barrier may trigger a another much larger selloff than what was experienced earlier seeing prices fall to $250 levels.
One must however explore the impact of bitcoin prices on Ethereum markets as on the whole, the bitcoin value of Ethereum has remained fairly stable over the past few months. In the short term, a movement below the $275 mark is anticipated but the risk is threatening immediately as volumes remain above $600 million. However the uncertainty caused by weak trading earlier this month has raised considerable flags for a potential revisit to the $175 mark. The majority view the markets as volatile but with the potential to visit lower ranges if markets remain stagnant over the week.
It would be wise to sell small amounts of ether, with a buy becoming important if prices jump