ETH Crash? Ethereum Price Prediction: What Is Happening to Second Biggest Cryptocurrency?

  • Alex Morris
    📚 WikiCoin

    As Ethereum hits its lowest point of the year, U.Today digs deeper into why the second biggest cryptocurrency in the world is plummeting

ETH Crash? Ethereum Price Prediction: What Is Happening to Second Biggest Cryptocurrency?
You may also like:

At the epicenter of the bloodbath

After reaching its peak of $1,400, Ethereum has been steadily falling since May. As the lynchpin for many ICOs, it also took down many other altcoins.

Ethereum turned out to be one of the worst performing cryptocurrencies of the previous month (ETH price tanked by almost 33 percent). However, September is already shaping to be even a bigger disaster for Ether as the currency has recently reached its 16-month low. ETH current price is sitting at $172, losing a whopping 30 percent of its value in merely two weeks.

According to a recent U.Today report, Ethereum has also reached a record number of shorting positions, which is inextricably connected to this ongoing downtrend. However, some predict that this massive sell-off could trigger a “squeeze” (when the price of an asset rapidly increases because of the high level of shorting).        

👉MUST READ Ethereum Briefly Surpasses Bitcoin Because of Artificially Inflated Trading Volume
Ethereum Briefly Surpasses Bitcoin Because of Artificially Inflated Trading Volume

What's behind the decline?

Ethereum has been widely considered a major Bitcoin rival since its very launch since it represents an innovative platform that allows developers to build their own decentralized projects. However, the hype started to fizzle out, and the current coin’s price vividly shows that. Subsequently, it is important to understand the main reasons behind this Ethereum flash crash:

  1. Decentralized apps are great, but not everyone knows that. CryptoKitties, the only “killer app” contender in this niche, has an embarrassingly low number of users compared to an ordinary mainstream app (there is a good chance that the majority of its audience consists only of developers and testers). While they do make baby steps towards the mainstream adoption by planning their Asian expansion, it's too little too late for Ethereum. As a prominent economist Nouriel Robini states, casino games, scams and CryptoKitties pretty much represent the majority of dApps.

  2. Dwindling interest in ICOs. In order to seamlessly launch an ICO, one had to spend only about 20 minutes. The fact that basically anyone can create an initial coin offering resulted in an endless number of outright scams and projects that only have a white paper and the recent inflated ICO failure rate.

    “ Ether's price was inflated earlier due to the ICO mania," - BitBull Capital CEO Joe DiPasquale.

    Cryptocurrency analyst Kevin Rooke has also recently published an in-depth analysis of how ICO sell-off correlates with the current ETH price. Rooke concludes that ICOs are selling Ether in droves (more than $30 mln last week alone). However, the biggest revelation is that ICO also hold a staggering amount of $600 mln worth of Ether, and it’s safe to say without an ounce of exaggeration that Ether’s future solely depends on whether these companies further decide to hold Ethereum in their treasuries.   

  3. A tough competition. Ethereum might have the first mover advantage, but its bigger competitors in the likes of Stellar, NEO and EOS might already dethrone it in the nearest future.

  4. Bearish market sentiment. Ethereum may be one of the biggest losers of the past few months, but one shouldn’t forget the whole cryptocurrency industry is going downhill partly because of regulatory uncertainty in the US. The SEC rejection triggered a knee-jerk reaction, immediately causing Bitcoin to plummet. On Sept. 10, another meltdown started after the US SEC ceased trading on two crypto-based securities.  

Predictions from Ethereum founders

Who knows better about the future of Ether than its founders? Now we would like to cover some of their predictions.

First of all, of course, we are going to focus on what Vitalik Buterin has to say. During a recent Bloomberg interview Vitalik made headlines, stating that the cryptocurrency space will never see the industry mammoth-size growth again. He claims that this is due to the fact that the industry is witnessing mainstream recognition around the globe.

Vitalik is not overly optimistic about the future of crypto and Ethereum in particular. Back in February, when Ethereum went from $1,400 to $580, he warned investors about the immense volatility of the industry. Recently, he yet again adopted a note of caution after an explosive op-ed written by Stella’s Jeremy Rubin. Rubin claims that an Ethereum price crash is imminent because of its fees that are dubbed “gas.” Remarkably enough, Vitalik agreed that Ethereum could indeed hit zero, but he claims that there are proposals which would forbid applications to pay for “gas” in non-Ethereum assets.

“Reminder: cryptocurrencies are still a new and hyper-volatile asset class, and could drop to near-zero at any time,” - Vitalik Buterin, Ethereum cofounder.

Another Ethereum co-founder Joseph Lubin said that a dramatic Ethereum crash in price is not an indication of the currency’s future growth. He considers that volatility is normal, and the cryptocurrency industry is moving in the right direction. As U.Today reported recently, he doubled down on his stance during a CNN interview.

Industry bigwigs weigh in

Ethereum has been on the lisps of the biggest names in crypto. Let’s have to say what they have to say about the future of Vitalik Buterin’s creation.    

Olaf Carlson-Wee, CEO of the biggest crypto-oriented hedge fund Polychain Capital, voiced one most vanguard Ethereum price prediction for 2018, claiming that the so-called flippening scenario will happen as earlier as in 2018. This prediction was made during the peak of the crypto craze in December. As Ethereum keeps dropping like a rock in September, we can say with confidence that it's not the case.

When will Ethereum crash? Speaking of more long-term predictions, Changpeng Zhao, the CEO of the largest cryptocurrency exchange Binance, feels extremely bearish about the future of Ether, claiming that the currency will be eventually overshadowed by more efficient technologies like EOS. Even considering that mainstream decentralization is inching closer, Ethereum won't take advantage of it, according to CZ.

Arthur Hayes, Co-Founder & CEO of BitMEX, has also recently lashed out at Ether, claiming that it should “go down to double digits.” Remarkably, earlier BitMEX launched a swap product that would let users bet against Ethereum, which many experts believe also a had a visible impact on the value of Ethereum.  

An extremely bullish forecast for 2018 was offered by Reddit co-founder Alexis Ohanian. Back in May, when there was no indication of a dramatic price decline, Ohanian said that Ethereum would reach $1,500 by the end of 2018. While the second cryptocurrency is indeed poised to appear in the double-digits territory if market bears persist, this prediction, while not being completely outlandish, doesn’t seem realistic (although it could be relevant when it comes to Ethereum price prediction for 2020).   

The recent announcement about upcoming CBOE Ethereum futures gave ground for many speculations about the potential ramification for Ethereum. Tom Lee, a well-known Bitcoin pemabull, doesn't that Ethereum futures will not have a short-lasting effect on the coin’s price. However, it’s rather challenging to predict the reaction of a highly volatile cryptocurrency market when a mainstream financial institution makes a move towards crypto adoption.

More Ethereum price predictions



deVere Group

$2,500 by the end of 2018 with even bigger growth in 2019 and 2020

Investing Haven

$1,000 by 2020, but 2018 is a possibility

Finder panel of Blockchain experts

Ethereum will rise by 82 percent

The bottom line

So, will Ethereum crash? While many are inclined to think so given its epic fall over the last two months, it's actually too early for a definite answer. This technology is still in the early stage of its development on its, so the prolonging bearish trend is more its first litmus test rather than a death sentence.

👉MUST READ Ethereum Joins Google Cloud Platform, ETH Community Excited
Ethereum Joins Google Cloud Platform, ETH Community Excited

Cover image via
Subscribe to U.Today on Facebook, and get involved in all top daily cryptocurrency news, stories and price predictions!
👓 Recommended articles

Is Litecoin a Good Investment in 2019? Is It Safe to Invest in LTC?

Is Litecoin a Good Investment in 2019? Is It Safe to Invest in LTC?
You may also like:

Each cryptocurrency has its own positive features and unique peculiarities that allow it to develop and grow steadily. Among all representatives of the market, Litecoin stands alone. The project successfully combines the fundamental factors by which it can claim continued growth in the capitalization rating.

The forecast for 2019 clearly indicates that its most important distinctive details will surely help it move forward, imposing serious competition to the rest of altcoins.

👉MUST READ Zcash (ZEC), Litecoin (LTC), and Dash (DASH) Had Biggest One-Year Increase in Circulating Supply
Zcash (ZEC), Litecoin (LTC), and Dash (DASH) Had Biggest One-Year Increase in Circulating Supply

Features and principles of functioning

Appeared in 2011, the project immediately attracted the attention of users. Its creator, Charlie Lee, has focused on protecting his own cryptocurrency from possible future problems. So, unlike its older brother Bitcoin, Litecoin was initially ready for scalability. LTC cryptocurrency is in permanent operation due to a large number of copies of the program, whose source code was published a week before the start of the plan. The client guarantees security, and its new version has SegWit support.

Litecoin is endowed with a whole list of features.

  • Chain of blocks. This allows you to process a much higher volume of transactions compared to its “big brother”, Bitcoin. It is achieved by increasing the frequency of generation of new blocks, which gives a chance to maintain a larger volume of ongoing operations without modification and, if necessary, change it in the future.

  • Wallet encryption. Encryption allows you to protect yourself from fraudsters. Thanks to this feature, you have to enter a password every time a cryptocurrency is spent. The user also has the ability to view the transactions and account balance. Encryption protects against various viruses that can steal a wallet password and coins.

  • Reward. At the moment, miners get 25 coins for each confirmed block. Following statistics, the number of coins is halved every 4 years.

  • Mining. The mining algorithm of Litecoin is similar to the algorithm of the most famous cryptocurrency, Bitcoin. The main difference lies in the intensive exploitation of RAM during the mining of LTC. Therefore, it is advisable to use ordinary computers with GPU instead of machines with a powerful specialized CPU, for which development becomes quite problematic. The maximum supply of coins is 84 million, and this is almost four times the corresponding number of Bitcoin.

It can also be noted that Litecoin is written in the C ++ programming language. Among the supported operating systems are Windows, Mac OS X and Linux, and many others.

👉MUST READ Top Cryptocurrencies by Mining Revenue in 2019: Bitcoin (BTC), Ethereum (ETH), Zcash (ZEC), Litecoin (LTC), and Bitcoin Cash (BCH)
Top Cryptocurrencies by Mining Revenue in 2019: Bitcoin (BTC), Ethereum (ETH), Zcash (ZEC), Litecoin (LTC), and Bitcoin Cash (BCH)

Relationship to Bitcoin

Despite the strikingly close relationship with Bitcoin, which must be taken into account when analyzing the feasibility of investing in Litecoin for 2019, it is worth noting that the distinctive features of cryptocurrency should be its main development. At the same time, the most important unique features are:

  • More organized, centralized money management

  • High transaction speed

  • Low commission for transactions

  • Ease of making transfers

Charlie Lee stressed that it is Litecoin who is obliged to take the place of the currency that the majority of users will use. At the same time, the existing simplicity, speed and availability of transactions should contribute to the achievement of this goal. In this case, the prospects for the growth of crypto-finance will impress even the most optimistic people.

Differences from Bitcoin

Although the Bitcoin code is at the heart of Litecoin, there are still differences, and in some cases significant. One can distinguish the main ones:

  • More efficient use of a computer’s central processor (CPU) than a video card (GPU), which is fundamentally different from the main cryptocurrency.

  • Due to the increased block generation rate, the transaction is rather short-term and takes no more than 150 seconds.

  • The opportunity of mining in wallet in the SOLO mode or a pool.

  • Mining complexity is recalculated much faster than of Bitcoin’s one.

  • The emission is four times the BTC emission and makes up 84 million coins.

Similarities with Bitcoin

On the other hand, there are also some similar features with the main cryptocurrency:

  • Mining is performed in the same way, albeit using different functions.

  • There is no external control due to the decentralized type of network.

  • Both cryptocurrencies have a limited supply of coins.

  • The anonymity of both wallet owners and miners. Complete freedom of disposal of funds on the wallet.

  • A transaction cannot be undone.

Thus, it can be said that differences from Bitcoin make Litecoin a distinctive digital currency capable of expressing itself in the future.

What about disadvantages?

However, negative factors also exist:

  • With the creation of ASIC-miners, it is more difficult for ordinary users to mine cryptocurrency, and power is concentrated in the hands of large companies.

  • The failure of the LitePay service dealt a serious blow to the popularity of the virtual coin. The developers planned to create a system that had different integration with Visa. Despite the active work and the investment of a large amount, the project was not able to start. In the company, no one could explain what the money was spent. The scandal undermined the credibility of the digital coin.

  • Interdictions at the level of state authorities. Many states cannot decide on the status of digital money. Laws are either not released or are in development process. Only a small number of countries have completely legalized cryptocurrencies.

👉MUST READ The Best Litecoin Wallets 2019
The Best Litecoin Wallets 2019

How to invest in Litecoin

The easiest answer is to do it through exchanges.

Most investors and traders purchase Litecoin for US dollars or BTC (Bitcoin). Since different trading platforms have different trading or purchasing power, be sure to check whether your exchange supports transactions in US dollars or BTC for LTC.

LTC logo
‘Litecoin with man using a tablet computer‘ Image by 123rf

As a rule, the best option is to use a large trading platform, such as Binance (where you can exchange BTC for LTC) or Coinbase (to use a credit or debit card in US dollars).

However, since the cryptocurrency market is a large and, moreover, unregulated industry, it should not be viewed as the same type of investment opportunity as shares of stocks, bonds, or other securities. In fact, traders and investors should consider lots of factors when investing (especially given the volatility of digital assets in recent months).

Ways to earn Litecoin

Besides investing, there also other options to get LTC:

  • Mining. Litecoin is still in its heyday, as was once Bitcoin. With the help of the computing power of a personal computer, it is still possible to actually generate new coins.

  • Cloud mining. The client rents the computing power that Litecoin uses to generate the coins. However, this is a controversial decision. After all, this practice means that landlords of personal computers get more profit than the mining of Litecoin itself.

  • Litecoin cranes. Cranes are advertising sites where a user must enter a captcha and receive a small amount. It is difficult to call it a serious earning as for the whole day you can get only a couple of dollars at best.

Comparing all options, we can say that active mining remains the main method of obtaining LTC.

Technical analysis features for 2019

Since the bottom of Litecoin marked by Charlie Lee has already been passed, you can pay attention to the prospects for further development of the project. As of April 17, 2019, the cryptocurrency chart looks the following way:

 Litecoin chart
Image by Tradingview

It is important to pay attention to the level of $80 – it can be considered as an important support zone, consolidating at which can open the way to growth. Given the damage caused by the protracted fall, it is crucial to clarify that before the beginning of the active growth phase Litecoin should (just like other representatives of the cryptocurrency market), go through the recovery stage. As a rule, it is expressed in a prolonged neutral-positive movement.

The first half of 2019, in the wake of the shocks experienced by market participants, may become a consolidation period. The transition to the bullish movement can be supported by plans of entering the industry of Bitcoin ETF, the opening of the Bakkt platform and a number of other events that can attract serious investment flows.

👉MUST READ Forbes: Litecoin (LTC) Price Triples in Q1 2019, Gaining Over 200%
Forbes: Litecoin (LTC) Price Triples in Q1 2019, Gaining Over 200%

Selling coins for the community’s benefit

Charlie Lee, the creator of Litecoin, sold all his LTC to avoid accusations about the impact on the rate of the coin. This action was intended to make Litecoin an even more decentralized currency. And, despite the fact that after the sale of coins, the Litecoin exchange rate fell, in the long term, such a decision by the creator of cryptocurrency can bring him multiple benefits.

“For a currency to really be … a worldwide decentralized currency, you can’t have … a real leader who’s trying to control things, so to make it more decentralized, eventually I would step away,” said Charlie Lee.

Litecoin showed its record maximum at the moment in December 2017, when one coin cost $374. After its creator sold all of its assets, the price of the altcoin plummeted, and Lee was subjected to unflattering criticism from users. Many experts also called this move frankly unsuccessful. However, such an ambiguous act can really become the basis for creating the most decentralized digital currency.

In any case, this suggests that Litecoin has a strong developer, strategist, and leader who has a clear motivation and strategy for action. Charlie Lee is engaged in the development of his project, regardless of the value of the currency, and it definitely has a good effect on loyalty to its product from users.

Litecoin forecast for 2019: What analysts say

In the first six weeks of 2019, LTC’s rate went up to a new high, where it is currently trading at around $79.

From August 8, the miners' remuneration will fall from 25 to 12.5 LTC. The reduction in mining income will lead to a weakening of interest in mining of the cryptocurrency. In this situation, the fall in the supply of coins is expected to be approximately double.

According to analysts, the rate of LTC will rise approximately until the beginning of August, when the project will reduce the reward for the mining of coins. At the moment, the cryptocurrency is in 6th place in the rating of the largest digital assets – its rate exceeds $75 with a market capitalization slightly above $ 4.8 billion.

Tom Lee, CEO of Fundstrat Global, is confident that by the end of the year, the rate of the coin may grow by 640%.

Forbes logo
‘Forbes website homepage‘ Image by 123rf

Forbes analyst Billy Bambro said that the 6th largest market capitalization of Litecoin cryptocurrency (LTC) will be ahead of XRP by the end of the year and will take 3rd place.

Although cryptocurrency prices are still far from its previous highs, LTC has managed to double its rate since the beginning of 2019.

Bambro believes LTC pricing is a response to the active efforts of the Litecoin Foundation and developers to improve coin security and privacy, in addition to choosing several well-known partners.

The eToro analyst team, led by Mati Greenspan, conducted a serious study of Litecoin. According to its report, the current cost of LTC is significantly underestimated.

The experts note that Litecoin has good network scalability compared to Bitcoin, fast and low-cost transactions and ongoing technological improvements by the Charlie Lee team: atomic swap, Lightning Network, SegWit.

Thus, when making an analytical forecast for Litecoin for 2019, experts take into account all the factors that contribute and increase the popularity of a crypto asset in the future, and also expand its attractiveness in the eyes of investors and the public.

These include:

  • Litecoin functionality → recognition of real practical use

  • Litecoin's technical superiority → faster transaction speed, lower cost, and easy scalability using Segwit and Lightning Network technologies

  • Litecoin decentralization and representativeness → high user confidence and excellent online rating

Among the factors that led to the growth of Litecoin are Microsoft’s plans to create a platform for decentralized processing and storage of digital identification data based on blockchain technology. And Litecoin has become one of those ecosystems that the company considers potentially suitable as the basis of this large-scale project.

These and other advantages of the Litecoin network find a positive response in Litecoin’s forecasts for 2019, and analysts predict a permanent increase in the price of  the cryptocurrency in the May-July period.

👉MUST READ Litecoin Price Prediction — How Much Will LTC Cost in 2019-20-25?
Litecoin Price Prediction — How Much Will LTC Cost in 2019-20-25?

So, what is the decision?

Over the years, Litecoin consistently follows Bitcoin, keeping a little distance from it. The stability of the project is complemented by an important advantage – the coin appeared much earlier than other coins in the capitalization rating. The presence of history allows you to create a “safety cushion” in the form of trust, which is still rare on the cryptocurrency market. Accordingly, Litecoin may well be considered as a good option for investment.

All in all, Litecoin is worth investing in. The top management of the project is actively working on improvements that allow maintaining high positions of “digital silver” in the capitalization rating. In addition, it is likely that in the near future the bear market will completely end, passing the green light to the bulls. This makes investing in the cryptocurrency promising.

Cover image via
Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!
👓 Recommended articles