Ethereum (ETH) has been perceived both as Bitcoin’s rival, and as a defunct coin lacking the excitement and price growth potential of the leading asset. However, ETH coins may be instrumental in the coming years, making the price weakness mystifying.
Recently, John McAfee noted the strange connection between the indispensable coin, and its weakness on the markets:
Here’s what I find funny: Ethereum is trashed more than any currency, and yet no currency is more necessary and central due to It’s smart contract platform that is used by more than 50% of all new altcoins. It’s like everyone values water, but not the containers it is carried in.
— John McAfee (@officialmcafee) March 29, 2018
In the latest market shakedown, ETH slid below $400, but bounced quickly to $397.30. The price slide happened with relatively high trading volumes above $2 billion, and the share of ETH trading on the markets rose to 12.3%.
Ethereum is also instrumental in making up trading pairs for most altcoins, but also, it would pay out gas costs in the future, as distributed apps and smart contracts proliferate. But ETH has lived through another deep correction, losing more than 75% since its peak. ETH also never recovered its levels against BTC.
But just as ETH is at a low position, talk of overtaking Bitcoin has resurfaced, with a prediction for another attempt of “flippening” with Bitcoin. Ethereum co-creator Steven Neyaroff recently stated that the multiple projects and computation demand would help lift the price of ETH, up to three times its current values.
Even the current levels of usage of the Ethereum network, however, have not lifted the asset’s price organically, and a lot of the price movements happen on speculation. It is also unknown what would happen in case Ethereum-based USDT and EURT tokens become more active and numerous. USDT tokens often serve as credit on the markets, inflating the price with the possibility of exuberant buying.
But ETH may take time to command a much higher price range, and at a price of $400, the asset may be vulnerable to a shakedown to even lower levels. Yet the price above $1,000 was reached within days, and may be possible in the future.