The ethereum price has fallen again in today’s session and is headed for its fourth consecutive weekly drop. Most of the damage was done on Monday and Tuesday, with the cryptocurrency losing 25 percent of its value over the two days and dropping below $200 for the first time since May. The cryptocurrency stabilised in the next couple of sessions and ever rebounded to around $230 in early trading on Thursday, but was unable to sustain the rally.
As of 14:22 BST on Friday, the ethereum price stood at $193.00. The cryptocurrency has lost 6.3 percent of its value in the last 24 hours, according to data from US-based exchange GDAX.
Some have attributed ethereum’s recent troubles to concerns of a bubble, which have somewhat deflated investors’ enthusiasm for the cryptocurrency market as a whole. The idea that the market is in a bubble, has been expressed by some prominent figures in the investment circles, including tech billionaire Mark Cuban.
Another important factor is the rise of initial coin offerings (ICOs) – a fundraising events for ethereum projects, which have created an abundance of cryptocurrency that is being converted into fiat money. Concerns over the viability of some companies raising money via ICOs have also contributed to the decline.
Ethereum also experienced a flash crash on June 21 that saw its price prop from $296 to $0.10 in a matter of minutes before recouping its losses.
Earlier this week eToro analyst Mati Greenspan told Business Insider that the decline is likely a correction following the meteoric rise ethereum has enjoyed this year. The ethereum price has fallen over 50% in the past month, but it is still up over 2000% in 2017.
“Anything that goes up that far, that fast has to have some sort of correction," Greenspan said, as quoted by Business Insider.