As we all know, the exchange rate of Ethereum has fallen during the past few months (vs BTC). From around 0.035 BTC per coin six months back, the prices have fallen to 0.0205 BTC as of now. The market share of Ethereum in the cryptocurrency market has fallen from 11.5% to 8.3% during the same period. Other alts have also fallen, but not by this much.
And this has happened despite the boost it received from the IEOs. Can ETH manage a comeback anytime soon? Will the investors stop selling their ETH holdings for BTC, and hold on to the coin?
ETH can still gain ground to ~ 0.035 BTC or more later, as we all for now that only Bitcoin's price is moving up significantly compared to other Alts, but If altcoins manage to have a bull run too, ETH prices will be back within reach.
IEOs are influencing both Bitcoin and ETH prices as tokens can be bought with either of the two crypto unlike during the ICO era when it was mostly in ETH.
Most of the IEO funding is still occuring in ETH and although BTC payments can also be made, the volumes are not significant enough to have an impact on the exchange rates. And one of the reason for the recent crash in ETH prices may be the influx of so many crap projects among the IEOs. There are some exchanges out there, where more than two dozen IEOs are ongoing at the same time. These guys care only about the revenue and not about the quality of the project. And in the end, they are having a negative impact on the ETH exchange rates.
Another thing to remember here is that IEO volumes are nowhere near the ICO volumes that we had back in 2017. Investors are more cautious now, after the failure of so many ICOs during 2018. The popular sentiment regarding ICO/IEO remains negative and it will take a long time to get the situation normalized.
BTW, ETH exchange rates have breached the 0.02 BTC per coin level, and are now trading at 0.0198 BTC per coin according to coinmarketcap.