Ethercoin Price Falling– Are Investors Rightfully Disillusioned?

Investors Fear Ethereum Price Sell-Off After PlusToken Transfers 789K ETH

 

Ethercoin is an asset backed by the Ethereum project’s ethers, which Ethercoin developers purchased during the Ethereum presale. Assuming the developers fulfill their promise, ethercoin holders can redeem their coins at a 1:1 ratio for ethers once the Ethereum project official launches its blockchain. Since its launch, the ethercoin price has been incredibly volatile, bringing huge price swings almost every day. Nevertheless, the ethercoin price has been trending downwards.

 

This price decline might tempt traders to invest on speculation, but investing in Ethercoin is a bad idea.

 

Ethercoin Price Trending Downwards

 

From October 11-14, the Ethercoin price fluctuated around 176,000 satoshis. On the 14th, the ethercoin price briefly crashed to ~100,000 satoshis. By the next day, it had recovered to ~161,000 satoshis, but it fell back to the 100,000 satoshi mark on October 16. But it soon recovered again, rising to more than 200,000 satoshis. However, on October 17 the ethercoin price reversed course again, returning to ~172,000 satoshis. October 18 brought another price crash, reducing the ethercoin price to its current price of 100,212 satoshis.

 

Investors Fear Ethereum Price Sell-Off After PlusToken Transfers 789K ETH

The Ethercoin price has been volatile since its launch, but it appears to be trending downwards. Chart from CoinMarketCap.

 

 

Analysis

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Ethercoin is an asset backed by ether, which does not exist yet itself.

 

 

The 100,000 satoshi mark proved to be a floor for the ethercoin price during the past week. Despite falling there several times, buy pressure has always returned the ethercoin price to pre-crash levels. Nevertheless, the ethercoin price is trending downwards. As the CoinMarketCap chart above indicates, the ethercoin crashes became deeper throughout the past week. The reason the ethercoin price is so volatile is that the coin suffers from low volume. In fact, only $5 in ethercoins have changed hands in the past 24 hours (per CoinMarketCap).

 

It is unclear how increased trading volume will affect the ethercoin price, but low prices may tempt investors who missed out on the Ethereum presale. However, the Ethercoin project carries a great deal of risk beyond ordinary altcoin investments, and consequently investors should stay away from Ethercoin.

 

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