The price of Ethereum dropped to a massive low of $511 on March 18 from its value of $606 the day before – a 16 percent decrease seen after the world’s largest search engine announced its ban of all cryptocurrency and crypto-related ads. Ethereum’s plummeting cost was the lowest it ever had in three months. Ethereum’s current price is a humongous dip from its $1,400 high – a staggering -60.70 percent decrease.
Ethereum is not alone in its price plummet. Digital coins such as Ripple, Bitcoin Cash, and Litecoin have also seen declines. Analysts believe that the current events affecting the world of cryptocurrency contributed to the digital currency’s downward spiral. However, a report from Silicon Angle claims that Ethereum’s price drop is mainly due to the investigation being done by the Securities and Exchange Commission. Last July, when the SEC declared digital tokens as covered by securities law, it has inadvertently shut down questionable ICOs while also launching an expansive investigation of the entire cryptocurrency industry.
Ethereum, being both a cryptocurrency and a blockchain platform that has a built-in support for smart contracts, is currently considered as the most popular blockchain utilized or Initial Coin Offerings. ICOs utilize the Ethereum blockchain as well as accept ETH as payment making the digital currency a requirement to purchase prior to buying into an Initial Coin Offering – a situation that helps push the demand for the digital currency. The less ICOs present in the market, due to SEC shutting a few down, the less investors are interested in purchasing ETH thus the pressure and fear inadvertently driving Ethereum’s price.