However, Ethereum behaves differently than many coins that are often mined in a "pump and dump" cycle. While some altcoins rely solely on speculation, the Ethereum ecosystem continues to grow through applications. in the real world Whether thanks to DeFi, NFTs or now with innovations like Eigenlayer and the wider staking ecosystem. So while achieving a large pump in the short term can be difficult.
Ethereum is actually acting exactly like any other pump and dump shitcoin, just on a bigger scale because it is more popular than the rest of them. It also has no real world application. Exactly like any other pump and dump shitcoin the owners and pumpers keep coming up with a new fake hype to pump it
ICO -> IDO -> IBO -> IEO -> ITO -> STO -> DeFi -> NFT
These are arbitrary names describing the same "fundraising" concept, where someone creates a completely useless token out of thin air and sells it to anybody who buys it using ether as its fuel therefore help keeping the fuel alive.
Looking at the charts shows the same exact behavior as any other pump and dump shitcoin as well, with same phases:
- Initial phase where the shitcoin is starting to get hyped, has an initial pump after being on major exchanges for a couple of months (ie. from 0.002 to 0.03 BTC which is 1400% back in 2016)
- The initial dump where the investors pull out of the shitcoin, the owners (Vitalik et. al.) cash out their millions by dumping their premined coins (ie. from 0.03 down to 0.007 BTC which is a -76% dump for almost an entire year where we don't see anything more than dead cat bounces)
- The biggest pump, this is almost always the last biggest pump the shitcoin can ever see in its entire existence. In this phase the hype is at its maximum (ICO craze for ethereum), bitcoin is on a bull run and waves of newbies are coming in that are good "victims" to sell the shitcoin to (ie. going from 0.007 BTC to 0.15 BTC which is a 2042% pump)
- The biggest dump, at this point the hype is ended, people have realized what they've bought has no future so they are not buying into it anymore. As the pumpers realize there is no more potential left, they start dumping the shitcoin (ie. dumping from 0.15 all the way down to 0.015 BTC which is a -90% dump from Jun 2017 to Jan 2020). Duration of this phase depends on the shitcoin, how big it is, how much they can re-pump it during the dump (ie. the dead cat bounces), etc.
- The continued dead cat bounces phase where the shitcoin will keep trying to be re-pumped after the massive crash (in this case that -90%) and fails most of the time to get any major pumps bigger than 10%-20% and sometimes it gets some bigger pumps but they will never be as big as the biggest pump and will definitely never reach its ATH. (in case of ETH, because it is a popular shitcoin they managed to pump it up from 0.015BTC bottom for a couple of times and even reach 0.08 BTC but because it is useless it got dumped hard again and today ETH is sitting at 0.03BTC far from the ATH it touched during the third phase....)