During the initial coin offering boom and the height of the crypto hype bubble in 2017, Ethereum’s price ballooned to as much as $1,400 per ETH at its peak.
Nearly two full years later, and the asset is still 85% down from its previous all-time high price, yet one crypto analyst claims that Ethereum is “overvalued” and looks “weak” on monthly price charts, suggesting another 40% fall could be ahead.
Inflating Ethereum: The ICO Boom, And Resulting Bubble Pop
Ethereum is an altcoin that offers smart contract functionality, giving it unique attributes above and beyond what Bitcoin can offer and giving it added value for developers. It’s earned the crypto asset the number two spot in the list of top cryptocurrencies by market cap, behind only Bitcoin itself.
Throughout 2017 as the crypto landscape heated up, Ethereum became the platform of choice for most developers to launch new altcoins as Ethereum-based ERC-20 tokens, that could either remain on the Ethereum blockchain long term, or later be moved to their own mainnet.
Many of today’s top cryptocurrencies were born as ERC-20 tokens, and the demand generated by the ICO boom during 2017 helped bring Ethereum’s price to an all-time high of nearly $1,400. But once the crypto hype bubble popped, and the ICO boom fizzled out due to increasing pressure from financial market regulators, Ethereum’s price plummeted to a low of nearly $80.
Today, Ethereum’s price remains as much as 85% down from the all-time high it set in early 2018, yet one crypto analyst still says the price of the number two cryptocurrency by market cap is too high and is currently “overvalued.”
Monthly to me looks weak – failed to break diagonal resitance for 700 days.
– KEY support flipped resistance, see arrows.
– MASSIVE gap
– Nobody is building anything new and/or launching ICOs
– IMO overpriced
🔥 GIVE ME THAT 40%…