Ethereum Under Pressure As Worries About A Bubble Pop Up

Cryptocurrency Ethereum was under pressure on Monday, dropping 9.9 percent to $215 an ether, which is its lowest level in longer than a month.

According to news report, the digital currency has been having a tough go of it lately, falling more than 45 percent since hitting a record high of $400 in mid-June. There is talk that the cryptocurrency market is reaching a bubble after Mark Cuban said bitcoin, the Ethereum competitor, was already in bubble mode.

“I think it’s in a bubble. I just don’t know when or how much it corrects,” Cuban recently tweeted, noted the report. “When everyone is bragging about how easy they are making $=bubble.”

Following those comments, came a statement from Jeffrey Kleintop, Charles Schwab’s chief global investment strategist, who, according to the report, also suggested bitcoin was in a bubble and in one not seen before.

Still, despite the declines in the value of a ether, the report noted the digital currency does look like it will have a bright future.

“When looking at bitcoin blockchain versus Ethereum, there’s no doubt Ethereum is superior,” Mike McGovern, the new head of investor services FinTech offerings at Brown Brothers Harriman, said in the report. “It doesn’t cost as much to mine ether tokens, because it requires less electricity than bitcoin.”

Late last month, GDAX, the digital currency exchange operated by Coinbase that saw the price of cryptocurrency Ethereum drop in a flash crash last week, announced it is reimbursing customers. According to a news report in TechCrunch, GDAX said it would reimburse customers who lost money when the cryptocurrency dropped from $320 to a low of $0.10. The price recovered quickly, but the speedy decline in the value of the digital currency forced traders to experience margin calls or stop-loss orders that resulted in steep losses.