The short answer to the question whether we still believe that the price of Ethereum will hit $1000 before 2020: yes.
The Ethereum price flash crash: Reason for concern?
We’ve been looking at some slight volatility with ethereum’s price in the last week or so, most notably the Coinbase crash due to heavy demand in trading. To dig deeper into ethereum price analysis, there’s more to this story. You’ll want to know more about why ethereum experienced a “flash crash”, which briefly took the price down to a staggering $13.
While this might induce panic in some, you’ll find a very good reason behind why this happened. Let’s look at the technical reasons behind it and why ethereum is still a solid investment far into the future.
What Caused the Flash Crash?
As Seeking Alpha points out, the problem originated with strong demand for ethereum investing congesting the Status ICO. This was already a problem recently, and it’s also exposed major issues in the ethereum network.
Since it’s not really made to take on such heavy transactions, you can see why a crash was inevitable. It’s no different from what happened at Coinbase recently.
The problem was, once Status ICO went down, it brought on a wave of panic that temporarily crashed ethereum’s price. In fact, this wave of panic is what led to the Coinbase incident occurring.
What’s the Impact of the Crash on our long term price prediction?
If you panicked yourself during this crash, you shouldn’t. Things recovered quickly, and it hasn’t affected trading anywhere else on the planet. In Asia, both ethereum and bitcoin continue to flourish with a price at an outstanding premium.
Even more positive is if you happened to buy ethereum during the crash, you bought it at a record low price. After recovery, you made a lot more money in the process.
Transaction volume will likely calm now, hopefully preventing crashes like this from happening again. Further ethereum price analysis shows the cryptocurrency still thriving long-term, including likely hitting a price of $1000 by 2020.
Investors just need to stay away from unstable exchanges until they become reinforced for heavy trading moments.
Keep reading us at EthereumPrice.today as we explore ethereum price analysis week by week.