On March 28 we wrote about Ethereum and it’s rise over 1,000 %. The cryptocurrency took a hit this week and plunged over 50%.
While bitcoin has seen range-bound prices, ether plunged more than 56% during the week ending 15th April at 12:00 UTC, according to Poloniex figures.
George Samman, blockchain advisor and consultant, described the development as one that had been foreshadowed by changes in market fundamentals.
“Ether has fallen back to earth for sure,” Samman told CoinDesk. “Its technicals were deteriorating for a while and finally price fell with them.”
Christopher Burniske, analyst and blockchain products lead at investment management firm ARK Invest, spoke to the currency’s selloff, noting that exchange data signaled a shift was forthcoming as well.
“The sell order book on [digital currency exchange] Poloniex has consistently been 30-50% deeper than the buy order book,” he told CoinDesk.
But while ether has been suffering sharp price volatility, it has also been experiencing robust transaction activity.
The currency’s daily trades neared 35,000 on 14th April and remained above 30,000 during the several days prior. Since mid-March, these daily transactions have almost always stayed above 30,000.
In comparison, the digital currency did not consistently exceed 10,000 trades per day before December 2015.
Read the full story on CoinDesk