The birth of decentralized blockchain technology can bring a new development direction for the future currency model. At present, there have been many virtual currencies created using blockchain technology in the market. These virtual currencies have gone from being ignored in more than ten years to now often appearing on the headlines of major financial magazines and quickly becoming extremely popular in the financial industry. financial products. Ethereum is a virtual currency whose price fluctuates more violently. So what are the reasons for the large fluctuations in the price of Ethereum, which has countless followers?

1. Reasons for strong speculative atmosphere in the market

Because of the future development of virtual currency, it is difficult to give a conclusion at present. Therefore, most users who choose various types of virtual currency transactions now value the speculative attributes of these virtual currencies. Therefore, the price trend of Ethereum will show a trend of ups and downs with changes in various external information, which is also the reason for the large fluctuations in the price of this virtual currency.

2. Reasons for being easily influenced by rumors

At present, the governments of various countries have different attitudes towards virtual currencies, and this ambiguous attitude of the government will make investors feel seriously insecure. Therefore, whenever there are market rumors, the issuance price of Ethereum will fluctuate greatly in a short period of time, which is also a special attribute of this virtual currency that has not been recognized by the government.

3. Reasons for serious manipulation by large players

The overall market value of a virtual currency like Ethereum is relatively small, so the trend of this virtual currency is often severely disturbed by large funds. Some large investors often use their capital advantages to impact the price of Ethereum, and use the fluctuation of virtual currency price to profit from it. This is also the main reason why the price of this virtual currency is prone to large fluctuations.

In recent years, as the prices of various types of virtual currencies have continued to rise, many investors have been attracted by this huge increase and have devoted themselves to virtual currency transactions. However, due to the fragility of the virtual currency market, the current price of Ethereum tends to fluctuate enormously. This is due to the factors of investors' speculative psychology and the reason why this virtual currency is easily affected by rumors. However, many large The direction of funds is often the determining factor causing price fluctuations.