As of June 11th, Ethereum has dropped in price by almost 50% in the last month. This is a pretty significant drop and has caused a lot of speculation as to why it is happening.

While there are a few potential reasons, the most likely explanation seems to be that Ethereum is simply going through a natural correction after such a large run-up in price.

In the last few months, Ethereum has seen an absolutely massive increase in price. It started the year off around $10 and then shot up to over $300 by early May.

This kind of growth is simply not sustainable and it was inevitable that a correction would happen at some point. And that’s exactly what we’re seeing now.

One of the other potential reasons for Ethereum’s price drop is that ICOs (initial coin offerings) are becoming less popular. A lot of ICOs are built on the Ethereum platform and they have been one of the main drivers of Ethereum’s price increases over the last year or so.

If ICOs start to decline in popularity, it stands to reason that Ethereum’s price would also start to fall.

Finally, it’s also possible that we’re seeing some general weakness in the cryptocurrency market right now. Bitcoin, for example, has also fallen in value by around 30% over the last month.

So it’s possible that Ethereum is just following suit here.

Whatever the reason, it’s important to remember that corrections like this are perfectly normal and healthy for any market. After such a large increase in price, it’s to be expected that Ethereum would correct downwards for a while before potentially resuming its upwards trend.

So there’s no need to panic just yet – this isn’t necessarily the beginning of the end for Ethereum.