The Ethereum price is heading downwards again after a few days respite from the bears, and today the pace seems to have picked up, seeing it head towards $250.
Although, all cryptocurrencies are suffering again this week, ETH seems to be one of the worst affected. There are several factors contributing to this: one of these is that market speculators appear to be in favour of opening short positions against Ethereum and the Ethereum price shorts have increased spectacularly in the last few hours, with around 30% more short positions opened so far.
This is quite different to a few days ago when there was no noticeable increase in short positions. Today, some bulls are taking long positions because of the price dip, but shorting ETH seems to be the stronger trend.
The second factor affecting ETH is the bitcoin price. While ETH is doing worse than most of the other cryptos, bitcoin’s downward trending price today signals that the entire market is going to see even more downturns.
Another factor in Ethereum’s fortunes is its treatment by MSM. An article in Techcrunch just two days ago claims ETH as an asset, not the network, will collapse. It isn’t that the writer is particularly biased against ethereum; he simply thinks the crypto asset will not survive in its current state. However, plenty have said the same thing about bitcoin over the years, so these kinds of statements are nothing new. As JP Buntinx writes in The Merkle, unfortunately this article was published at the same time as a drop in bitcoin’s price was predicted and more shorts on ETH appeared.
We’ve been in this territory before and anyone owning ETH may just have to grin and bear it for a while. It depends whether or not you believe sunshine always comes after rain!