This price decline might tempt traders to invest on speculation, but investing in Ethercoin is a bad idea.
From October 11-14, the Ethercoin price fluctuated around 176,000 satoshis. On the 14th, the ethercoin price briefly crashed to ~100,000 satoshis. By the next day, it had recovered to ~161,000 satoshis, but it fell back to the 100,000 satoshi mark on October 16. But it soon recovered again, rising to more than 200,000 satoshis. However, on October 17 the ethercoin price reversed course again, returning to ~172,000 satoshis. October 18 brought another price crash, reducing the ethercoin price to its current price of 100,212 satoshis.
The 100,000 satoshi mark proved to be a floor for the ethercoin price during the past week. Despite falling there several times, buy pressure has always returned the ethercoin price to pre-crash levels. Nevertheless, the ethercoin price is trending downwards. As the CoinMarketCap chart above indicates, the ethercoin crashes became deeper throughout the past week. The reason the ethercoin price is so volatile is that the coin suffers from low volume. In fact, only $5 in ethercoins have changed hands in the past 24 hours (per CoinMarketCap).
It is unclear how increased trading volume will affect the ethercoin price, but low prices may tempt investors who missed out on the Ethereum presale. However, the Ethercoin project carries a great deal of risk beyond ordinary altcoin investments, and consequently investors should stay away from Ethercoin.
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Disclosure: The author is paid in and holds investments in bitcoin. He is not invested in or affiliated with any of the altcoins discussed in this article. Any advice contained in this article is solely the opinion of the author and does not reflect the views of CCN. Neither the author nor CCN is liable for your investing decisions, so do your homework and never invest more than you are willing to lose.
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Last modified: October 20, 2014 02:14 UTC