At present, Ethereum is really struggling to hold any value within the markets. Of course, the majority of cryptocurrencies are taking big hits at the moment, with the bears really taking a hold of the markets, overall though Ethereum’s performance has stood out as quite poor to say the least. As a currency with the second highest market capitalisation, Ethereum is somewhat responsible for encouraging the direction of the markets, as is Bitcoin.
At the time of writing, Ethereum is valued at $619.99, down 10.45%. As you can see, Ethereum is now very close to falling below the $600.00 threshold. If this does happen, indeed, we expect Ethereum to see some heavy resistance when it eventually tries to move back up over $600.00. This is bad news for recent investors, although overall, we shouldn’t remain too pessimistic, Ethereum is of course very likely to recover from this.
According to Cryptovest, recently, Ethereum’s transaction fees have increased somewhat, in line with increased activity within DApps on the Ethereum network.
According to Cryptovest:
“Ethereum transaction fees are increasing due to increased activity again. While they are far from the $4+ fees seen in January, it appears that some phenomenon is causing them to reach levels we have not seen since the beginning of March. The current rate of an ETH transaction right now is just above $0.60. It has been on a steady climb since early April after plummeting since the beginning of the year.”
See more from Cryptovest for yourself, here-
As we know, previously this has caused big problems within the Ethereum network. Simply put, an overload from DApp activity can totally consume the network, meaning that trading is likely to halt and of course, exchanges and wallet activities also cease to function. Whilst it is unlikely to happen, the risk is always there.
Is this causing the demise of Ethereum?
It’s unlikely, overall the drop we are seeing in Ethereum is most likely just down to the current bearish market we are seeing. With all cryptocurrencies struggling along, Ethereum is unable to break from this pattern alone, even with increased activity on the network. Now of course, increased transaction fees may be putting investors off, which could have further implications for the value of Ethereum, overall though, this demise will only be temporary, assuming the markets level out soon enough.
As activity on the network increases, we should keep an eye on how Ethereum performs. Whilst risk is low at the moment, there is a chance we could see the Ethereum network crash again, bear this in mind because if it happens, it’s likely to have a profound effect on the value of the currency.