Ethereum Price Plunges to Two-Month Low as Market Turns Sour

Journalist:
September 13, 2017

The crypto markets took a bearish turn on Wednesday, as 98 of the top 100 cryptocurrencies experienced price decreases. The ethereum price was not immune to this movement, and it has pulled back to a two-month low.

Ethereum Price Plunges to Two-Month Low

The etheruem price was expected to increase leading up to the release of Metropolis, its latest protocol upgrade. The first phase of this upgrade is set to take place in latter September, so there was speculation that the ethereum price would challenge its all-time high if the markets continued their uptrend or at least remained stable.

Unfortunately, this has not been the case. First, traders initiated at sell-off when bitcoin approached $5,000. This corrective wave dropped the ethereum price from $390 to $350. Before the markets could attempt a recovery, the People’s Bank of China (PBoC) ruled that initial coin offerings were illegal. The ensuing flash crash forced the ethereum price below $300, although it quickly recovered to about $330. A few days later, unconfirmed reports that the PBoC was preparing to move against bitcoin exchanges began to surface. This pushed the ethereum price lower still, this time to $290. When no ban came, the markets began to rally, and ethereum advanced past $310 on September 12.

But this progress was short-lived. Tuesday afternoon, industry leaders including Charlie Lee and Bruce Fenton publicly stated that credible–though unnamed–sources had told them that the PBoC bitcoin exchange ban rumors were true.

ETH Price Chart from Bitfinex

The markets immediately turned sour, and every major cryptocrurrency began to decline. The bitcoin price dropped close to $3,800–it’s lowest point since August. Ethereum’s trajectory was even worse; it fell 12% to about $265. This brings the ethereum price to a two-month low and reduced its market cap to about $25 billion.

ETH Trading Volume Chart from CoinMarketCap

The downturn affected U.S., European, and Chinese exchanges relatively equally; ETH/USD,ETH/EUR, and ETH/CNY are all trading at $261-265. Significantly, however, ethereum is trading at a $10+ premium on Korean exchanges. Bithumb, Coinone, and Korbit all price ETH/KRW above $275.

Last modified (UTC): September 15, 2017 09:24

Josiah Wilmoth @Y3llowb1ackbird

Josiah is the US Editor at CCN, where he focuses on financial markets. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.