Ethereum (ETH) Drops Another 5% as Projects Dump Their ICO Funding
The price of Ethereum (ETH) has significantly underperformed the overall crypto market over the past few weeks and this trend shows no sign of slowing as ETH is currently down another 5% over the past 24 hours.
Since the beginning of September, Ethereum has dropped more than 60% and currently trades at $181.17. This is in comparison to the AltDex 100 Index (ALT100), a benchmark index for large-cap cryptocurrencies and tokens, which is down roughly 17% over the same period.
The latest round of losses is likely driven by a recent sell-off in ETH holding by crypto projects that staged ICOs on the Ethereum blockchain. According to data from Kevin Rooke, a well-regarded cryptocurrency researcher, more than $30 million in ETH has been sold by these projects in this week alone.
ICOs have spent over $30 million worth of ETH this week (153,500 ETH).
This is more than any week since March 2018.
The scary part? These ICOs still have over $600,000,000 worth of treasury ETH in their accounts (3,000,000+ ETH).
Will they sell? Will they hold? 🤷♂️ pic.twitter.com/DlGGziEBAZ
— Kevin Rooke (@kerooke) September 11, 2018
Added downward pressure comes in the form of short interest that remains near all-time highs. Currently, there are roughly 202,000 ETH sold short, which equates to roughly $40 million.
There has been no indication as to what could turn around the current downtrend, and major competitors, including Tezos (XTZ), have gained momentum in recent trading.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.