Ethereum falls below $100 with a stable network usage

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Ethereum price fell below $100 USD and is at $98 at the time of this writing, the first time since may of 2017, when he first reached this price level.

The next day, red meets investors on the stock market with the rate of decline of cryptocurrency from 5% to 10%. The brunt of the carries the BCH, while BSV stands out as the only crypto currency with growth (with the exception of tablconv) in the top 50.

It should be noted that trading volumes for ETH remain significant, at $2.2 billion, while the price is on the verge of falling, including market capitalization. Some explain this by closing of long positions by traders, others point out that there is reduced demand for the cryptocurrency.

Interestingly, the use of the network for several months remains stable. This means that people do not withdraw from the market, or perhaps there is a certain amount of people who find some usefulness, in a stable trade.

The difference in network usage and price

The divergence between the price and Ethereum using its network is at its highest level ever, and the gap continues to increase in recent years.

Network utilization should rise to the price of ETH remained stable or started to increase. However, pricing is an economic theory that does not convince us of the correctness of the action in this situation because it is based on the rationality of the market and the stock market does not always fit into this theory, and so the current price may reflect future potential.

Abstract a theoretical point of view, all these arguments may have a basis, but practically it may not apply equally to all schemes of economic development of the market, because the probability of many events is impossible to predict for sure.

So we only have to wait for that period when again there will be a demand which exceeds supply. Only in this case, you can expect an increase in prices.

This means that, despite all existing evaluation methods Ethereum through economic calculation of support levels, in fact, we have no idea when the price will bottom, and then will go up again.

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Tags: Ethereum

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