Miners and ICO projects are killing Ethereum

ETH/USD is falling like a stone, down over 13% on a daily basis.
Miners and ICO projects are selling coins to cover expenses.

Tanya Abrosimova Independent Analyst

Ethereum changing hands at $146.14, which is the lowest level since July 2017. The coin with the market value of $15B slipped from the second place in cryptocurrency rating amid growing bearish sentiments. ETH/USD lost 16% on Monday and may extend the decline on Tuesday unless new buyers join the market to purchase more coins while they are cheap.

Ethereum lost nearly one-third of its value in one a week, while a hash rate in Ethereum network is down to 236 TH/s, which is the lowest level since February. The current hash rate situation means that miners are suffering big losses as they have to pay for electricity, equipment, and rent amid declining profits from each mined coin. This may lead to unhappy consequences for the market as miners have to sell their coins to cover expenses.

ICO projects may also drag the price down as companies are likely to cash out the funds they raised during crowdfunding.

A report coming at the behest of Diar, a daily crypto newsletter, also found strong bearish catalysts that point to an extended selling action in the Ethereum market. The study based its bearish prediction on the possibility of the leading ICO projects liquidating their ETH holdings.

According to Larry Cermak from Diar, at current prices, some projects would become unprofitable and continue selling ETH to cover expenses.

“Obviously, a lot of the ICO companies will continue selling ETH to cover operating expenses and to fund their businesses,” Cermak said in a tweet. “It’s important to realize that the majority of these projects isn’t generating any revenue. And most likely never will,” he commented.

Ethereum's technical picture

On the intraday level, a sustainable move above $170.00 is needed to mitigate the bearish setup. However, this looks very unlikely under current market conditions as the decline is gaining traction. While little in terms of support levels under the current price, ETH/USD may easily reach $130 once $140 handle is taken out. Daily RSI stays flat in the oversold territory.

ETH/USD, the daily chart

Author

Tanya Abrosimova

Independent Analyst

Top 3 Price Prediction: BTC consolidates gains, ETH defends support, XRP nears breakout trigger

Bitcoin, Ethereum and Ripple begin the week on a constructive note as the top three cryptocurrencies attempt to extend rebounds after recovering nearly 4%, 2% and 2.6%, respectively. BTC steadies around $65,600, ETH continues to hold firmly above the key $1,700 support, while XRP nears the upper boundary of the falling channel pattern.

Ethereum Price Forecast: ETH struggles below $1,700 amid subdued on-chain users and capital outflows

Ethereum rises, albeit gradually, toward $1,700. The smart contract token reflects a marginal increase in buyers seeking to re-engage at lower price levels, following the massive drawdown from mid-May, which was largely driven by geopolitical tensions in the Middle East and macroeconomic uncertainty.

XRP clings to support as derivatives interest cools

Ripple hangs on to $1.14 support, extending its rebound from its early-week support at $1.10 and June’s low of $1.05. Maintaining this short-term support level is vital for the remittance token to preserve its bullish momentum, with a decisive breakout above $1.20 likely to signal further upside potential.

Crypto Today: Bitcoin, Ethereum, XRP recovery slows amid incessant capital outflows

The cryptocurrency remains in a broader corrective bias on Friday, despite majors such as Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) holding slightly higher than early-week support levels. Bitcoin hovers around $63,500 amid a capped upside. Ethereum eyes a breakout past $1,700, while XRP hovers above $1.40.

Experts agree: Bitcoin nears bottom, but weak demand raises doubts

Bitcoin (BTC) is trading above $63,000 at the time of writing on Friday after rebounding from the key 200-week Simple Moving Average (SMA) near $62,000, a level widely viewed as key long-term support. The recovery may suggest that Bitcoin has found a floor after a sharp correction that spanned more than a month, but some warning signs persist.