Ethereum price weekly analysis 9 August: ETH sinks quickly after network congestion
Ether took a big dive on Tuesday, as did most cryptocurrencies, breaking key support levels.
- Ether, together with the majority of cryptocurrencies, was battered hard on Tuesday.
- Trading volumes remained relatively steady over the week, finishing slightly ahead of where they began.
- Microsoft debuted a new Blockchain as a Service (BaaS) product that doesn't require crypto mining.
Ethereum (ETH) has remained mostly stable over the past week, save for the agonizing decline that occurred early Tuesday morning. Last Wednesday, the value of ether was US$420.76. The price crept up to a weekly high of US$424.61 that same day, posting minor gains and losses until the early hours of 7 August 2018.
On Tuesday morning, ether was worth US$410.70. Throughout the course of the day, the price collapsed significantly, losing over US$50 in value, sinking as low as US$356.85. The coin ended the week 14% down.
At the time of writing, ether was valued at approximately US$361.21.
Trading volumes over 24 hours were consistent, beginning at US$1.82 billion and finishing slightly up at US$2.2 billion.
ETHNews reports that the price drop was significant and broke key support of US$400 against the US dollar. Additionally, analysts revealed that there was an increase in selling pressure on the ETH/BTC pair below the 0.0580BTC pivot level. The pair broke the 0.0570BTC support.
Cryptovest suggests that on Tuesday, one account kept moving ETH around, paying for circular transactions. These moves, along with others, have caused massive amounts of congestion.
Regular transaction fees have shot up above US$1, which is quite costly, particularly for Ethereum.
Global software company Microsoft introduced a new Blockchain as a Service (BaaS) platform known as Ethereum Proof-of-Authority on Azure. The service allows businesses to build applications on the Ethereum blockchain that are not secured by a Proof-of-Work (PoW) consensus algorithm and do not require cryptocurrency mining.
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