Ethereum’s brutal week — 3 reasons why » Brave New Coin

Since hitting highs of over $1,400 in mid-January, Ethereum has been locked in a bitter downtrend, punctuated only with relief rallies to meet a series of lower highs. At present, the cryptocurrency is trading under $300—a price not seen since November 2017.

To put this into perspective, the loss represents the removal of just over a hundred billion from Ethereum’s market cap, a value bigger than the GDP of Slovakia, and not far from the entire net worth of Jeff Bezos. In terms of its share of crypto’s total market cap, Ethereum now sits around 14%—a long way from its high of 32% in June last year, when it was fast closing in on Bitcoin, which at the time held 38% (since then Bitcoin has recovered to 54%). 

But is it fundamentals or technicals driving this downturn? Does the drop in price reflect a fundamental flaw, or is Ethereum just caught on the wrong side of yet another tumultuous market cycle?

Technical doubts

Falling prices are not necessarily indicative of flawed…