South Korea and Japan related news combine to strike Ethereum (ETH) prices.
Ethereum is feeling the heat and prices are staying down, threatening to fall to new lows. ETH prices have continued to teeter towards the unknown as the bearish bite from Japan and South Korea keeps up the pressure.
ETH dipped on news that Japan’s Financial Services Agency (JFSA) was to officially warn Binance for operating within its borders without a license. The Korean counterparts chipped in with the indication that they would intensify their fight against the use of cryptocurrency in money laundering activities. Sentiment from two of the largest cryptocurrency markets is affecting Ethereum (ETH) big time. It’s difficult to think that investors were upbeat only days ago as the market looked up.
But confirmation by Binance CEO Changpeng Zhao that indeed they had received a letter has left investors panicking. Ethereum is one of those experiencing a steady downtrend, going down -3.03% against the USD to trade at $511 on Friday at 2.00 GMT. But the biggest change was in its 24h change where the crypto was down -15.98% against the US dollar.
The sudden fluctuation of investor emotion isn’t helping the biggest two cryptocurrencies. And it’s ETH that is teetering towards the abyss. What will it take for ETH to stay above $500?
Trading in the opening hours saw the price of Ethereum (ETH) briefly fall to about $509 before a weak recovery attempt pushed it slightly up to $519. The upside didn’t last though, the price dropping sharply back to $511, and has hovered between $507 and $515 since (By the time of writing). The worst scenario for Ethereum would be for it to break below $500. This will mean that the price can go on to reach its lows of $453.
May be this will help
Ethereum will still be better than Bitcoin, deVere CEO predicts
Ethereum will overtake Bitcoin and become the dominant cryptocurrency in the world. That is according to Nigel Green, the CEO of Financial Services group deVere. His comments come just a day after Twitter CEO Jack Dorsey claimed that 10 years from now, Bitcoin would be a world currency.
Now Green contends that the honor will be for Ethereum, the second largest cryptocurrency with a market cap of $50 billion. Even though this might just be another of those bullish comments that cryptocurrency tuff-wars have got used to, the context makes it an interesting development. The two men make their comments at a time when Twitter is said to be weighing up options in relation to banning cryptocurrency and ICO ads on its network. Now, one may want to know whether it’s bitcoin or Ethereum that’s likely to have it rough if the ban takes effect. We should remember that Facebook and Google already instituted regulations restricting such advertisements.
In his own assessment, Nigel believes that Ethereum is in prime position to overtake Bitcoin in the long-term. While speaking to The Times, he acknowledges the role of crypto’s top coin. However, he categorically disagrees with Dorsey and states that:
“Unlike Jack Dorsey, I do not believe that Bitcoin will become the world’s sole currency in 10 years. The original cryptocurrency is likely to remain the most dominant one in the market for some time, especially with its scalability issues being tackled,”
He goes on to say what he believes will eventually be the case, even though according to him, many other cryptocurrency projects will make it to mainstream use. His own bullish remarks about Ethereum went like this:
“Jack Dorsey is, clearly, extremely bullish on Bitcoin, but I believe that its closest rival, Ethereum, could in the near future take over as the world’s biggest and most important cryptocurrency,”
On why he holds this opinion, Nigel points out to the popularity of the Ethereum platform. He points to the numerous ICOs launching on the platform via the Ethereum Virtual Machine (EVM) as the main reason. The provision of a smart contracts capability makes Ethereum an attractive platform to the blockchain community. As such, Ethereum is superior due to this, as opposed to Bitcoin’s transaction-driven network.
He opines that:
“I’m noticing a huge shift towards considering Ethereum as a blockchain [the revolutionary technology that underpins cryptocurrencies] platform rather than just a cryptocurrency.”
Perhaps such optimism is just what Ethereum (ETH) and other cryptocurrencies need as the bear market bites.