The price of ETH, the native cryptocurrency of the Ethereum network, dropped 14% overnight, as other large crypto such as Bitcoin, Ripple and Bitcoin Cash fell within the range of 2 to 6%.
Within one hour, the price of ETH fell from $ 574 to $ 492, by more than 14%. While ETH is recovering relatively quickly from the $ 492 mark by 6%, it is still down about 10% from $ 574.
Some analysts, including WhalePanda, hosted the popular encryption podcast Magical Crypto Friends, suggest that ETH may have fallen due to the discarding of ether through initial ICO and blockchain design projects.
The issue with ICO and blockade projects that raise many millions of dollars after selling tokens to fund operations and developments must eliminate a significant portion of the ETH that they have raised. Most ICOs, such as EOS, tend to liquidate their ETH in public exchanges such as Bitfinex, triggering a domino effect and leading other cryptocurrencies to drop with large margins.
Price triggered by transparent events, such as the movement of EOS intelligence contracts to the exchange of crypt-currencies, often result in a short-term recovery. As such, the initial drop in the prices of ETH by about 14% was reduced to 8%.