Contrary to the massive gains registered by bitcoin price, ethereum is on a downward trend with statistics indicating that the altcoin hit a seven-month low against the value of bitcoin.
Ethereum investors have been greeted with nothing but disappointment over the last two months as the cryptocurrency has been declining after it nearly hit $400 at the beginning of September. Ethereum price may have hovered around the $300 mark for most of the time in the last 50 odd days, but it has resisted any gains in stark contrast to bitcoin that has been surging continuously during that time.
On Thursday, ethereum showed movement but in the negative with the cryptocurrency’s price falling by 6 per cent as traders started liquidated their ethereum holdings to add more fuel to bitcoin’s bull run, temporarily forcing it below $280. As of now ethereum is trading at $299.
While the $$ pricing of ethereum could be one point of concern for the investors, another situation that is far more dire is the ETH/BTC price trend. At one time, ethereum came dangerously close to achieving the “Flippening” — raising its market cap above that of bitcoin and becoming the largest cryptocurrency — so one might have expected it to prove to be more resilient than the legion of altcoins with much smaller market caps, but that’s not the case now and ethereum is trading at approximately 0.04 BTC – at 7-month low.
It is evident that ethereum’s short-term performance has fizzled, but all is not lost as the platform holds a lot of potential over the long run. Vitalik Buterin laid out a multi-year roadmap that explains some of the issues facing the platform — most notably scalability — and how developers intend to address them.
Moreover, Vlad Zamfir released a draft of a whitepaper for Casper, the proof-of-stake consensus mechanism that developers have been previewing for some time now.
Many of the projects that are being discussed at Devcon3 will take months or years to accomplish, so it is too early to predict when the ethereum price will turn a corner. However, current investors should continue to look to the future with optimism.