ETHEREUM REMAINS NEAR YTD LOWS AS ARGUMENT FOR ITS DEMISE IS MADE
Ethereum reached an all-time high of $1370 in January this year. Since then, the second largest cryptocurrency has lost all those gains and is currently trading at $275. In August alone, the currency traded within a narrow range of $241 and $312. This is despite the positive crypto news that was released during the month.
On Monday, TechCrunch published a report that predicted that ETH will collapse soon. The article sent shivers among Ethereum enthusiasts because of the popularity of the website. It is the largest technology website in the world with millions of visitors every month. The author, Jeremy Rubin, based his arguments on the fact that ETH is different from Bitcoin. While Bitcoin was created to be a digital currency, Ethereum was created as a platform to enable developers to create and run applications. These developers are then required to pay fees which are known as ETH Gas. The author writes: “If all the applications and their transactions can run without ETH, there’s no reason for ETH to be valuable unless the miners enforce some sort of racket to require users to pay in ETH.”
Yesterday, Ethereum Co-Founder, Vitalik Buterin, said that Ethereum will be valueless if it failed to evolve. In response to Rubin’s critique, he confirmed that if Ethereum failed to change “all parts of the author’s argument” would be correct.
The ETH/USD pair is now trading at 274.71. This is still within the narrow range it has traded in the past one month. Traders should now wait and see. If it starts an upward trend, it will be an ideal period to buy and move with it. If it breaks below the 241 level, it will likely continue the downward movement to below 200.