The queen of cryptocurrency Ethereum (ETH) hasn’t been well for a few weeks and Ethereum price movement in the past week is a telltale of the same.
During the past week Bitcoin (BTC) has been thrashed into a dip that the king of cryptocurrency has not been able to recover from; while the queen, where showed some independent movement, seems to be in a similar fix.
In the past week, ETH price has fallen as low down at one hundred and fifty-five dollars ($155) and went as high up as one hundred and seventy-seven dollars ($177). However, the price movement has failed to find any support towards the two hundred dollars ($200) mark.
Internal factors affecting Ethereum price movement
The founder of Ethereum Vitalik Buterin earlier spoke about the transaction cost of Ethereum remaining high and the blockchain network becoming congested. However, ErisX and LedgerX have been preparing for launching the physically delivered Ethereum futures; CME seems to be laying the base to follow suit as this tends to fine-tune its Ethereum reference rate and index.
The Ethereum price bulls are shifting towards scalability improvements as Proof of Stake Sharding and probably the layer two solutions such as Raiden and Plasma scheduled for 2020.
In the meantime the Ethereum development team has their work assigned as the debate develops among the developers and the miners on incentives of mining, whilst the emerging blockchain competitors who are focusing on greater scalability are attracting more developers and more funding.
Ethereum is often perceived as highly decentralized, so this should also be considered that the network of Ethereum is becoming increasingly vulnerable as over sixty percent (60%) of Ethereum’s nodes are currently hosted by cloud networks such as Google Cloud, Amazon’s AWS and the Alibaba Cloud. So, any decision from these tech giants to promote a competing blockchain or cryptocurrency can overshadow or sideline Ethereum nodes.
Ethereum price and the Fundamentals of Industry
The People’s Bank of China (PBOC) previously announced that it is about to launch what could be perceived as a digital Renminbi, but it will certainly be centrally controlled by PBOC.
Ethereum price and other existing cryptocurrencies are about to experience some further competition as this Renminbi stablecoin would witness fast adoption as the leading Chinese Fintech firms such as Alibaba are supporting this development.
For the past five years, PBOC was working on this project; however, it seems they are expediting the launch of this project as a response to Facebook’s announcement of launching Libra. Digital Renminbi is aimed to replace the paper currency and the coin circulation and will internationalize the Renminbi further.