Ethereum Crash

Ethereum Crash

Ethereum is one of the important currencies in the digital world. But there is a chance that Ethereum Crash in the market will happen which has made the tense environment in the digital world.

So what can be the reasons for the fall of Ethereum and what can be expected from the coming time?

Ethereum

Ethereum is an open source software designed similarly to the bitcoin. It is an operating system which is providing the smart contract functionality.

Ether is the cryptocurrency which is generated from the blockchain of the Ethereum platform. It was released in the market in 2015 and since then it is appreciated by the users. So what were the reasons for the fall in the price of the Ethereum?

Ethereum Crash

Here we will be discussing the cause that can be the reason for the fall in the price of the Ethereum and what can be expected from it in the coming future.

Hard fork

When it comes to the cryptocurrencies hard fork can be a difficult scenario. As it splits the coin into two versions that are the old one which has failed to upgrade and the other one that has upgraded.

This can lead to the fall in the price of the Ethereum. Let’s look at some of the scenarios which can affect the price of the Ethereum.

  • It can lead to the two splinter chains which can be the reason for the security problems.
  • Ethereum is a home-made hard fork which acts against the transaction values.
  • This will undermine the credibility of the blockchain. This can result in the loss in the faith of the buyers.
  • It can also affect the security and the scalability of the Ethereum which can lead to the fall in the price of the Ethereum permanently.

Trading Bots

This could be another reason for the fall in the price of the Ethereum. Companies and trader who has malicious intentions can affect the trading price.

  • This can create an illusion for the buyers. As from this, they can show them that the price is going down and force them to do panic sales.
  • It is one of the stable currency but bits can lead to the volatility in the price of the Ethereum.

This kind of manipulation or disruption can be dangerous for the Ethereum.

Big Amounts

This might be confusing for you that how a large amount of investment can lead to the crash in the market. But this can happen. If few people who make the major investment to pump up the price and then remove the investment immediately. This type of investment is always dangerous for any cryptocurrencies.

These are a small portion of the problems that can lead to the Ethereum Crash. There are some other possibilities which can lead to the fall in the market value of the Ethereum like:

  • Unprecedented criminal activities.
  • Domino effect.
  • Large-scale government interference.
  • Banning mining

Aftermath

There can be two possibilities if the price of the Ethereum falls.

Short Squeeze

In this, the price of the Ethereum will fall and rise for a short period of time. This kind of volatile nature can lead the short time investor to quit the Ethereum.

Long Squeeze

In this, the buyer can purchase the Ethereum when the price is falling. They might think that they will sell it when the price will go high.

But this can be dangerous for them as the price might keep on falling and have to suffer a heavy loss.

Conclusion

From this article, you might think that the Ethereum will fall down and will never be able to come back. But Ethereum Crash is the possibility which can be averted.

Proof of work can play an important part in saving the Ethereum from falling in the future.

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