As can be seen, network usage has fallen, mirroring the price or the price mirroring the fall in network usage. Interestingly, network usage has remained stable now for months. Network usage needs to rise for eth’s price to remain stable or to rise. Eth network usage and price, December 2018. The latter then has remained stable, but due to eth’s currently very high 7% yearly inflation, stability in network usage seemingly means a continued fall in price.
Ethereum’s price has fallen below $100 and has stayed at circa $98 at the time of writing for the first time since the beginning of May 2017 when it first reached the same price level.
Another day of red greets the crypto space with most down 5%-10%. BCH is bearing the brunt, while BSV stands out as the only green crypto in the top 50 (minus stablecoins obviously).Ethereum’s price on weekly candles, December 2018.
Trading volumes are considerable for eth at $2.2 billion while it appears to be on the brink of falling below a market cap of $10 billion for the first time since it gained it.
Some of this selling pressure might be due to eth longs closing, meaning speculators on margins who bought eth have to now sell it to give it back to those they borrowed it from to increase their bet levels and risks.
It appears these bulls got a bit exuberant starting in April 2018. Longs rose from ◊60,000 eth to an incredible ◊500,000, or circa 0.5% of all supply.
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