Assets, Ethereum

Is Ethereum Expected to Drop?

The value of Ethereum has been on a rollercoaster ride over the past year. After hitting an all-time high in January 2018, the value of ETH dropped by over 80% by mid-September 2018.

However, since then it has recovered somewhat, and at the time of writing is trading at around $200. So, is Ethereum expected to drop again?.

It is hard to predict the future value of any cryptocurrency, as they are all highly volatile. However, there are a few factors which could lead to the value of ETH dropping in the future.

Firstly, as more and more projects launch on the Ethereum network, transaction fees will increase. This could dissuade users from using ETH, and instead switch to alternatives such as EOS or TRON which offer free or very low transaction fees.

Secondly, Ethereum’s main advantage over other cryptocurrencies is its smart contracts functionality. However, many projects are now beginning to launch on alternative networks such as EOS or NEO which offer similar functionality.

NOTE: Warning: Investing in cryptocurrency carries significant risk and is not appropriate for all investors. Ethereum is a highly volatile asset, and its future performance cannot be reliably predicted. The prices of cryptocurrencies are extremely volatile and may experience significant losses or gains over short periods of time. You should exercise caution when considering an investment in Ethereum, as it may not be suitable for all investors given the risks involved.

If developers start to switch to these other platforms, then the demand for ETH could decrease, leading to a fall in its price.

Finally, it is worth noting that the majority of ICOs (Initial Coin Offerings) are launched on the Ethereum network. However, regulators around the world are starting to crack down on ICOs, and many countries have banned them altogether.

If this trend continues, then it is possible that fewer ICOs will be launched on Ethereum in the future, again leading to a decrease in demand for ETH.

Of course, there are also many factors which could lead to the value of ETH increasing in future. For example, Ethereum’s developer team is constantly working on improving the network and increasing its scalability.

If they are successful in doing this then it could make Ethereum much more attractive to users and developers alike.

Only time will tell what will happen to the price of Ethereum. However, given the various factors which could lead to a decrease in demand for ETH, it is possible that its price could drop again in future.

3 Related Question Answers Found

Can Ethereum Be Shut Down?

The short answer is no. The Ethereum network is decentralized, and therefore no single entity can shut it down. However, there are a few ways that the Ethereum network could be disrupted.

Is Ethereum Going to Be Deflationary?

The word “deflationary” is often used to describe Ethereum. But what does it mean? In general, deflation is when the price of goods and services goes down over time.

Is Ethereum Predicted to Go Up or Down?

It’s no secret that Ethereum has had a tough year. The second-largest cryptocurrency by market capitalization is down over 80% from its all-time high in January 2018. But could things be turning around for ETH?
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