Ether again dropped below the $400 mark this morning as prices continue to stagnate in a struggling market.
Cryptocurrencies are struggling to bounce back after a dismal Q1 shaved off more than half of the market cap.
A small rally today of 1.16 percent brings Ethereum back up to $399.64, a hair off $400 and its resistance, as of 16:25 today.
Why is Ethereum dropping past $400?
Positive momentum could be key to Ethereum pushing past the $400 boundary.
The crypto-market is renowned for receiving massive gains from unexpected momentum swings, and this time could be no different.
Ethereum is slowly gaining on bitcoin, with BTC struggling to rally back past $7,000 to maintain resistance.
Popularity in altcoins has spread, with investors impressed with the efficiency of smaller tokens.
Ethereum price news: Why is Ethereum dropping past $400? What is the price of Ether?
The bears have been insufferable and have mercilessly beat down on the price of the entire market across the last two weeks.
How all of this will play out for the Ethereum price, remains to be determined.
With the overall bearish pressure still dominating the markets, it seems no long-term gains can be secured as of right now.
A peak above $400 is more than welcome for Ethereum, albeit finding stability near this price level will be challenging.
Ethereum generates under one billion in trading volume over the past 24 hours.
Ether prices are struggling to recover
Although all cryptocurrencies suffer from lower trading volume, it doesn’t happen all that often the demand for Ethereum decreases in semi-spectacular fashion.
The air in the cryptocurrency industry was cleared by reports of the Soros Management Fund dipping its toe into the market to invest in the space.
This change could represent a nod of approval from market guru George Soros who previously said that bitcoin is in a bubble.
However, risk-taking appears to be dampening demand for Ethereum and other altcoins recently as traders might be putting funds back in commodities and stocks.
Ethereum price news: Why is Ethereum dropping past 400 dollars
As for Ethereum specifically, the release of Bitmain’s E3 Ethereum ASIC has caused many in the community to voice outrage on a potential hard fork.
According to EIP 958, this could thwart ASIC development long enough to implement Casper.
Ethereum Founder, Vitalik Buterin, rebutted investor fears, suggesting the new ASICs are not a big threat.
Buterin said: “If you look at the E3 that was released a few days ago the efficiency gains are relatively small compared to existing GPUs. My Chinese sources indicate a 220 MH/s miner costs about $2500, while Bitmain is offering a 180 MH/s for $800, which is only a 2.5x factor of improvement.
“[The ASICs are likely] a regular computer with a better piece of RAM and everything non-essential stripped out.”