Why has Ethereum plummeted to new lows?
Ethereum hits lows of $455, levels not seen since December 2017 amidst heavy trading
Ethereum has just hit a USD price last seen on December 8th 2017 amidst heavy trading volumes. At time of press, Ethereum is down 20% in 24 hours, versus 7% for Bitcoin. Why has it fallen in price so rapidly, beyond even the fall in Bitcoin?
The smoking gun is Google’s announcement that it was going to ban all crypto-related advertising on March 14th, which sent the markets into a freefall, crashing through all support levels. The announcement will affect the ICO market, which raises most of its funds in Ether. Without a reliable publicity machine, future ICOs are going to find it challenging to raise the levels of funds we’ve seen previously.
This ban comes after Facebook’s similar ban in January, which together is a damning put-down of cryptocurrencies by the two silicon valley giants. Especially when you consider their usual open nature to new technologies.
Add that to the fact that many existing ICOs need to cash out regularly from Ether into fiat currencies to pay salaries, rent etc., there are multiple negative pressures on the price of Ethereum.
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