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Investors Starting to Lose Faith As Ethereum Drops to $200

The month of September is quite hard for cryptocurrencies. The global crypto market is down because of the panic selling. Though Ethereum is a fundamentally strong cryptocurrency but it is also following the bearish trend. Ethereum has already lost the level of $300 earlier this month and is trying to dive below the level of $200. According to Mike McGlone, a commodity strategist, Ethereum can fall further and can touch the support target of $155 as the industry is maturing. Ethereum is also facing increasing competition and there is volatility in the market.

Currently, there are 1,926 cryptocurrencies available for trading on 13,731 crypto exchanges, all over the world. Ethereum is one of the most popular cryptocurrencies along with Bitcoin, Litecoin, and Ripple. The market capitalization of Ethereum is $22 billion and the current circulating supply is 101,808,60 ETH. As the cryptocurrency market is developing more and more, digital currencies are competing with existing currencies.

Some latest and innovative products such as open source, operating systems, and blockchain based distributed computing platform are helping developers to create functional blockchain applications without counterparty or middleman risk. These blockchain applications are also giving competition to digital currencies. Distributed ledger technology networks such as NEO, EOS, ICON, Waves, Lisk, and Stratis have also come to challenge Ethereum and other cryptos.

Because of the increasing competition, Ethereum is facing a huge selling pressure. Various Blockchain start-ups have also paid in Ethereum during their initial coin offerings (ICOs) to cover their expenses. According to managing partner of crypto hedge fund Multicoin Capital, Kyle Samani people are developing apps and software to enter in the crypto industry but the market got ahead of itself. Co-founder and Chief Executive Officer of blockchain powered network Ambrosus Angel Versetti said that Ethereum has worked well as compare to other newly launched blockchains. The negative narrative might be a creation of its competitors. Its competitors are spreading that the competitors of Ethereum are better and stronger than Ethereum. Though these predictions are not based on any fact and are speculative in nature.