Bad Days Are Over: Analysts Are Optimistic About Ethereum’s Future

In the latest Ethereum news, we are seeing the currency dip below the $170 mark which is far from what the projections were about it over the past week – but still an optimistic target for Ethereum and its future, according to analysts.

Currently, Ethereum (ETH) is trading at $228 and with that is relatively stable above the $200 margin. In regards to that movement, a couple of analysts have said that the sub-$170 movements were ‘the bottom’ for the second largest cryptocurrency by market cap – which rebounded from $166 to $230 and even went as high as $255 over the past week.

As analysts claim, the rapid growth of the ICO market in mid-2017 led many people to speculate that the price drop of ETH was triggered by the sell-off of Ethereum holdings by blockchain projects, which raised millions of dollars through public token sales.

One cryptocurrency research group named Diar, released a weekly report in which it outlined that ICOs still hold more than 38% of the amount raised during their token sales. Currently, analysts speculate that if ICOs decide to liquidate their (remaining) ETH holdings, the price of Ethereum may decline further from the low support level.

1/ There is a big misconception that ICO companies have liquidated most of their ETH holdings. In today’s issue of Diar, we looked at all the publicly available ICO treasuries and analyzed the numbers. https://t.co/EryLsW9Ouj pic.twitter.com/j2DYajcwzQ

— Larry Cermak (@lawmaster) September 10, 2018

A subsidiary of the major cryptocurrency exchange BitMEX also released a study which was titled “Ethereum holdings in the ICO treasury accounts” in which it listed the holdings of ICOs and the estimated balance sheets of major blockchain projects.

As the BitMEX team wrote in the paper:

“We conclude that the ICO treasury accounts have a much lower level of exposure to the price of Ethereum than many may have thought.”

At the end of the day, Ethereum is in a bad position considering its steep fall from $780 to $200 (74%) from April to September. However, the recent corrective rally may be promising and optimistic enough for it to establish at least half of its all-time high by the end of this year.