The current price of Ethereum, as recorded on the 1st of June, has fallen more than 40% after it established its all-time high of $4,384 back in May. This major downsizing of one of the world’s largest cryptocurrencies by its market cap has led to many analysts predicting further declines. Clem Chambers, the CEO of ADVFN- a financial analytics portal- believes that the recent plunge in the ETH/USD will remind one of the crypto crash that took place in 2018- which was preceded by a bull run of over 24,000%.
Ethereum To Plummet Further?
The value of Ethereum surged by more than 4,500% in March before it bottomed out wiping away almost 60% of the gains in just a couple of weeks of trading that took place in May. Chambers has also noticed that the exchange rate has been in a state of risk of going down- further adding that it might take more than three years for the cryptocurrency to go back to its previous high.
Akash Girimath, the financial correspondent for FXStreet has also noticed that the exchange rate might go below $1,200, which will cite the 365-day market value to realized value model. For the uninitiated, this index plays quite a crucial role in measuring the profit/loss status of those investors that purchased Ether in the last year.
One of the bullish catalysts for Ether could be a major upgrade in its network in July. This upgrade has been called the Ethereum Improvement Proposal 1559, or the EIP-1559, which will do away with the higher transaction fees that Ethereum levies on its clients. The second catalyst for this cryptocurrency could be the decreasing amount of this cryptocurrency in major exchanges. Recently Glassnode mentioned that the cryptocurrency was leaking out of the exchanges despite moving out of its price crash of 40%.
