Ethereum price weekly analysis 29 May: More falls for ETH following a coin dump
ETH has taken a huge hit as a massive tranche of coins was dumped over the last couple of days.
- ETH price keeps falling, losing almost 25% this week.
- EOS being blamed for massive dump of Ether.
It's getting harder to remain optimistic when it comes to the cryptocurrency markets. Like almost every other major coin, Ether has seen its price seriously eroded over the last few weeks. This week has not been an exception with ETH losing almost a quarter of its value just this week.
The US$800 levels we saw in early May look a lifetime away now that we're back around US$520. And it doesn't look like we've hit the bottom just yet. The trend lines are still headed downward and the little bounce we saw a couple of days ago was insignificant.
So, what's behind the fall in ETH? FXStreet and others say the reason for Ether's plunge is that the EOS team was selling the Ether it received during its crowdsale.
TrustNodes recently reported that EOS bought up about US$950 million of ETH over the previous 30 days. TrustNodes writes that around 180,000 ETH were traded in one hour on Bitfinex as opposed to the 20,000 ETH per hour usually recorded by Bitfinex and exchanges GDAX and OKEx.
In other words, it looks like a lot of ETH was dumped in a hurry, probably by EOS, causing the price to fall.
EOS will be moving off the Ethereum blockchain in the coming days, and it's speculated that this move is behind the sell-off.
NewsBTC says it's likely we'll see the price recover and advises that tomorrow could be a better day.
Disclosure: At the time of writing, the author holds BTC, EOS, ETH, ETH, LTC, TRX, BCC, ADA and XRP.