After a week spent recovering from a year-low price, Ethereum has crashed back below the $200 mark for the second time this month, losing roughly 10% of its value in a few hours.
The last 24hrs of trading has seen the price of Ethereum drop below the important – psychologically, at least – $200 point once more, in a step-down decent that has wiped around 10% of its value.
Looking at the ETH chart for that time period, we can see it steadily receded in price for much of early trading (GMT), its day was marked by two big sell-offs. The first came in line with a drop-away in the price of Bitcoin mid-afternoon, but the second – around 9pm – took a greater tool. While Ethereum’s price dipped back as low as $193 briefly following that second sell-off, Bitcoin recovered some of the value it lost, totting up around a 4% loss over the same time period.
If marks a depressing fall back for the crypto, which has seen better times in the last week following a steady decline that took it to a 2018 low around a week ago. It, however, failed to significantly breach the $220 mark that may have begun a conversation among technical analysts about a reversal in its fortunes.
While there seemed to be no direct news-based driver for the drop, it came not long after BitFinex announced the roll-out of trading in ETH via it’s new decentralised exchange, EthFinex. While it is linked to the order book of the standard BitFinex site, it only allows trading in pairs against OmiseGo, 0x and USDT – the latter being, by some way, the biggest volume pair.
Introducing Ethfinex Trustless – an Ethereum based trading solution placing security, privacy and control in the hands of the user.
— Ethfinex (@ethfinex) September 17, 2018
While that was rolling out its service, over on the main exchange, there was launch of a very different kind going on… as the amount of Eth being put into short positions, betting the price would fall further, took off just prior to the first dip in price.
It marks a further extension of what has been a series of all-time highs for short positions in the number 2 crypto during September. Indeed, around 120,000 more ETH is staked on its price falling right now than it was at this point in 2017. As big an indicator regarding sentiment for the crypto as you could perhaps expect.
If we are indeed only in the middle of the bear market, as some analysts are saying, things could continue to get a lot worse for Ethereum in the coming weeks. And there’s now a fair amount now staked on the fact it will.
Of course, as Bitcoin and ETH struggle, so the other big cryptocurrencies will follow. While the good news surrounding XRP and the launch of xRapid protected its price slightly, it was pretty bad news all around – with EOS and Litecoin both taking dives closely matching that of Ethereum. Indeed, eight of the Top 10 traded cryptos have lost 6% or more in the last 24hrs.