Ethereum Price Forecast: Japan & German Regs, ETH Price Crash, and More


Ethereum News Update

Pessimism returned to the cryptocurrency markets overnight, driving down values across the entire market.

Ethereum was no different.

ETH prices fell by nearly nine percent, driving the Ethereum to USD exchange rate down to $805.20.



Ethereum Price Chart

eth price chart for 22 feb

It’s almost impossible to tell what started the sell-off, but that won’t stop some analysts from speculating. Rather than contribute to the noise, I’ve devoted this Ethereum news update to some important events in the cryptocurrency space.

  1. Japan’s exchanges propose self-regulation. A recent NEM hack was confined to one (probably negligent) Japanese exchange. However, I was worried that the security breach would inspire a backlash from regulators. Apparently, Japan’s local crypto exchanges were thinking along the same lines, because 16 of them have banded together to propose a new self-regulatory body. This organization would be registered with the national Financial Services Association. (Source: “Japan’s cryptocurrency exchanges to form new self-regulating body: sources,” Reuters, February 20, 2018.)
  2. Germany: Some ICOs are securities. Not all. Germany’s main financial watchdog has clarified its position on initial coin offerings (ICOs), saying that a “precise case-by-case examination” is needed. This wasn’t an ideal scenario for blockchain entrepreneurs, but a little regulation can go a long way toward keeping the market vibrant and devoid of malicious actors. (Source: “German Regulator Pledges ‘Precise’ Oversight of ICOs,” CoinDesk, February 22, 2018.)
  3. Selkis: A crypto to regulate all cryptos. Odd as the idea may sound, a leading crypto expert is seeking to build a token-curated registry that would clean up the ICO market. His name is Ryan Selkis and he’s well-known within the field. While his idea is radical and would require broad support from the crypto community, it could surface as an interesting compromise between crypto intolerance and crypto anarchy. (Source: “A token to self-regulate tokens. But really.,” Medium, February 21, 2018.)

Over the long term, any one of these stories could be more consequential than today’s ETH price crash. However, it’s the short term that garners everyone’s attention.

Analyst Take

When it comes to regulation, I try not to dig in my heels. There are simply too many institutional players trying to squash the crypto boom for us to become enamored in moral and philosophical discussions. Politics is reality.

So if you’re eager to see cryptos succeed, you should make strong arguments, build tight alliances, and forge reasonable compromises.

I’m fairly bullish that we’re approaching the right blend of regulation and free markets, which is why we’re maintaining our $1,500 Ethereum price forecast for the end of Q2. By that time, today’s ETH price crash could be a distant memory.