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Ethereum Price Drops But Traders Continue to Accumulate ETH

Ethereum Constantinople Fork commenced on 28th February and like many other forks price of the Ether, the token was the point of focus. Earlier forks had a bullish sentiment towards them however lately the things have changed, and forks do not make as much noise as it used to do a couple of years back.

Ethereum was scheduled to fork much earlier in January, but an issue in the testing phase led to its postpone. Many crypto analysts have predicted a fall in prices for the Ether token, as was the case with the last hard-fork of Etherum which saw its prices go down by 20%. However, in the current scenario, the prices of Ether are down by 5% since the hard-fork.

Earlier the crypto community has been bullish about any major currency forking to form a new public-chain, as the hard forks guaranteed the existing owners of the coin with an equal amount of the newly formed toke, given they have the pre-forked tokens under their custody. However, that trend is fading away, as evident from the Ethereum hard-fork.

Market Sentiments Might Be the Cause of Price Fall

The ETH token price was meddling around the $123 mark, a drop of 5% since the commencement of the fork. However, one must note that Bitcoin still plays a pivotal role in driving the market sentiments. If Bitcoin is in green, the rest of the market follows the suit and vice versa. Currently, Bitcoin is trading at a 3.5% 2-hour low, and thus rubbing the trend on the Ethereum’s prices.

A lower trading price does not really affect the overall trading volume of currency when the momentum soars. The overall ethereum trading volume is still at around $3.7bn and shows no real signs of slowing down.

Traders Are Accumulating ETH

The current low prices serve a perfect opportunity for the traders who are on an accumulation mode, hoping to sell when the next bull market arrives. The fluctuating prices of Ethereum have become quite common in recent times as the ETH token is finding it difficult to break the upper limit of $140. ETH token has shown the upward moment on various occasions in recent times but fails to bank on it to create a bull run.

Many people are worried over Ethereum’s failure to soliditate its position, and the recent 5% drop is another factor which is adding to the worry of investors. However, cryptoanalysts believe that the current trends are the cumulative result of market sentiments and it should not deter the investors from buying ETH. many analysts also point towards the last Ethereum hard-fork which sank its prices by 20% and the trends continued for over a month.