Ethereum is Struggling: Will the ETH Price Recover Soon?

You would not be mistaken to think that the crypto industry is a Shakespearean tragedy of late, with billions and billions being wiped off of the entire market in the last few months. Prospects for growth have narrowed considerably, and there are many investors now pulling the plug for fear that they will end up with nothing rather than just a substantial loss.

Ethereum has not been immune to the proceedings and has struggled to gain traction after the “cryptocurrency bloodbath” early in the year. There is a number of reasons for such plummeting, and we will address them in this article, as well as look objectively at how soon the ETH price could recover.

Ethereum is not Alone

Cryptocurrency in general has taken a tremendous dive off of the proverbial cliff. Values of all major crypto tokens have plunged considerably and the investor confidence in the entire market has dropped to an extremely low point.

At a glance, the top 5 cryptocurrencies by market capitalization have all suffered terribly.

Bitcoin

The leading coin by market capitalization has dropped to a third of its value in just 9 months. This has had a knock-on effect across most other cryptocurrencies.

Ethereum

Initially, Ethereum gained a bit of traction as Bitcoin dropped and seasoned investors shifted money around to balance portfolios. With Bitcoin not attracting new investors as it once did, however, this slowdown reached Ethereum and it too began a downward trend.

XRP

Partly due to the Bitcoin crash and the market volatility as a whole, but largely for the token-specific reasons, XRP has taken a battering and perhaps lost the most of the top 5 currencies in recent times. With a solid protocol behind it, there could be a break-out, but currently, the XRP value is very low indeed.

Bitcoin Cash

The oddball of the current top 5, Bitcoin Cash largely has its fate tied to Bitcoin and has dropped as a result, but in the last few weeks, Bitcoin Cash has made some tidy improvements (although not anywhere near previous values) due to the coin-specific developments.

EOS/Litecoin

Depending on which tables you look at, the 5th spot is invariably EOS or Litecoin. Litecoin is very similar to Bitcoin in both mechanism and functionality and suffers badly when Bitcoin slumps. EOS, in contrast, is less dependent on Bitcoin’s fate but suffers from a general lack of media attention. This means it too has fallen along with the entire market.

Ethereum Does Have Teething Issues

It would be completely unfair to portion all of the blame on Bitcoin or general market trends when looking at the reason Ethereum is underperforming. After all, its development idea was to create a token that was not related to Bitcoin and could operate independently.

Initially, it was a two-horse race with Ethereum being the viable alternative to the might of Bitcoin. Investors, traders and users got on board, and there was a general atmosphere of positivity around Ethereum and its ability to one day surpass Bitcoin.

That was such a long time ago now, though.

In that timeframe, there were some truly impressive tokens launched that make the ETH token look a little outdated and the momentum has seemingly slowed in the crypto community with not many now really hoping that Ethereum will overtake Bitcoin.

Basically, Ethereum is/was a great token as an alternative to Bitcoin at the point of its inception. That was in a marketplace that really had little else in the way of competition. Now Ethereum always finds itself in a position of defence rather than attack, having to stay ahead of great competition from other altcoins that are all vying for the second-place spot.

Ethereum stagnated in value and has begun to tail off now with this lack of motivation, and this is largely a contributing factor to its woes of late.

Will the Price of ETH Recover Soon?

This is the million-dollar question and one that has far too many variables to consider in order to get an accurate gauge of recovery time.

With so much influencing ETH price, it is difficult to know whether Ethereum will recover at all, let alone soon. But there are a few things that could have positive outcomes for ETH in the short to mid-term.

These outcomes would all bolster ETH value.

If Bitcoin Breaks Out

Bitcoin is no stranger to market volatility, and if it breaks out and begins to rise healthily, there will be a lot of investor confidence restored. This will, in turn, generate more people venturing into the crypto markets and will by default mean more new users coming across Ethereum.

If Ethereum Gains Momentum from Its Own Community

In the cryptocurrency industry, a little bit of hype can go a long way, just look at Bitcoin Cash as an example of how a happy and productive community can buck a downward trend. If the motivation of the ETH community is to innovate and overtake Bitcoin rather than stave off lower competition, this could have a really positive impact on the ETH price.

If Other Tokens Run into Difficulties

Currently, XRP is the biggest contender to Ethereum, followed by Bitcoin Cash. XRP is in a position of uncertainty itself, and if it were to crash completely, then Ethereum would likely gain traction from those drawn away from XRP. This is because Ether is often seen among the altcoin communities as a better option to Bitcoin.

Bitcoin Cash likewise has a fork pending in November this year. With the potential to be a 3-way fork, this could spell the end of the entire token, relegating it into altcoin obscurity. This again would generate more ETH buyers.

With these outcomes purely conjecturing, it is very difficult to see what the future holds for Ethereum.

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