Ethereum’s founder Vitalik Buterin once said “The first thing I would think of when it comes to the concept of Ethereum, is that it is too good to be true.”

 

This 24 year old Russian programmer has earned the title of “V God” and has single handedly created the currently number two crypto currency.

The faith people have put into Ethereum can be seen through many grand names given, such as The “World Computer”, the representative of Blockchain 2.0, the cornerstone Token and more.

 

However, the plunge of Ethereum has left its “Ethereum believers” second guessing, “is Ethereum drying up?”

Perhaps true faith can only be consolidated through observing the inner mechanism principles in price fluctuation.

 

During the recording incident, “Bitcoin Tycoon” Shiao Lai Lee evaluated Ethereum as: “The ultimate rise of the Ethereum is pushed by the central bank. The central bank suddenly blocked withdrawal for Bitcoin, so the liquidity went to the Ethereum. This liquidity flows one way, so it skyrocketed. The cause is not community or leadership, and has nothing to do with Ethereum.”

In Lee’s eyes, the rise of Ethereum is just a bonus side effect of restrictions on Bitcoin.

Obviously, the policy has created a “time and place” for Ethereum in some respects. However, the opening of the currency of Ethereum met the market needs and the market’s embrace is the cause for its rise.

 

However, when the market entered a bear position, ICO projects dumped Ethereum in abundance, and projects yet to ICO had no progress. So was the downfall of Ethereum. From the high of $1400 at the beginning of this year, it fell below the $300 mark to the lowest of $250.2.

The founder of Bit Times, Huang Tianwei, said in a live broadcast: “The problem of Ethereum is mainly due to the fact that the project side has accumulated a large amount of ETH in the early stage, and the recent cash-out is more intensive. The main value of ETH is ICO based on smart contract, and when ICO cools, the fall in ETH prices is inevitable. Statistics speak, in July the market only invested a total of $100 million in ICO, which is difficult to support the huge market value of ETH.”

There are two main reasons for the decline of Ethereum. The project side sell-off lead to congestion of the Ethereum network. The general view for the price trend of Ethereum will continue to fall short term. Of course, there are people who are optimistic for long term prices. In the short term, ICO is unlikely to become popular.

V God has said: “I don’t encourage everyone “greatly profit” through Ethereum, but hope that people can use this technology to truly change the shape of economy, society and even culture, and realize the true decentralization ideal.” For the current market of Ethereum, V God has issued dozens of tweets to explain the history and status of Ethereum Casper research, mainly explaining the problems of FFG and CBC war and mechanism design. The cryptocurrency market has always been a mix of risk and opportunities.

The cryptocurrency market bear market may still drag on for long period of time. This may be a period of precipitation for investors, project parties and the market. It will remove impetuousness and “deep cultivation”, perhaps the next spring will arrive silently.