Ethereum (ETH) deprecated by almost $100 since Wednesday March 13, falling on its opening price of £500.15 ($698.15) to open at £440.31 ($614.61) today, according to CoinMarketCap.
Confidence in the second biggest crypto token on the market felt shaky today, with ETH slumping to the lowest prince since February 6 and the lowest since the start of the new year – £415.16 ($579.51).
At 9.04am, the token picked up slightly and exchanged hands at £438.37 ($611.90), down 0.51 percent.
Analysts in the crypto space noted the leading cryptos took a hit this week after Google revealed stricter advertising policies which will impact cryptocurrencies and initial coin offerings (ICOs).
The advertising giant announced: “This year, we updated several policies to address ads in unregulated or speculative financial products like binary options, cryptocurrency, foreign exchange markets and contracts for difference (or CFDs).
“We also updated our gambling ads policies to address new methods of gambling with items that have real-world value (eg, skins gambling).”
Google’s crackdown on malicious malicious advertising and phishing scams hiding behind clickbait ads comes after the company removed more than 7,000 AdWords accounts last year.
In 2017 Google said it had removed more than 3.2 billion ads in violation of its policies at a rate of more than 100 ads a second.
Ethereum price: ETH has fallen to a new low this year after Google’s announcment
Now Ethereum is among all of the top trading cryptocurrencies in the red after the news sparked a panic sell off.
Ethereum has been under a wave of pressure the past week without any sustained buying yet to emerge short term
But some analysts welcomed the Google crackdown, arguing it would clear the crypto space of malicious scams and actors.
Chris Keshian, managing partner and CEO of $APEX Token Fund, said: We see Google’s actions as progressive – as long as they continue to keep an open mind and don’t tar all cryptocurrencies with the same brush.
“Crackdowns on cryptocurrencies are the best way to weed out irresponsible and fraudulent ICOs and place greater focus on cases against unregistered persons acting as agents, brokers, and investment professionals in the cryptocurrency space.
“This is a key step in cryptocurrencies becoming a mature and stable asset class.”
Ethereum price chart: ETH hit a low today but attempted to claw back its losses
However FX Empire analyst Yaron Mazor was less optimistic about the bearish crypto performance, warning the market has been unstable since mid December.
He said: “Ethereum is within a dangerous range for speculators. The current price of Ether is near 690 US Dollars per coin.
“Extremely important support for Ethereum lurks around $624.
“And should that support juncture fail to hold, speculators could be concerned Ether may aim for its late November and early December ratios between 500 and 400 US Dollars per coin.
“Ethereum has been under a wave of pressure the past week without any sustained buying yet to emerge short term.”
Matthew Newton, analyst at eToro, agreed Google’s policies played their role, but argued cryptos have been in the red for a while now.
He said: “The impact of Google’s ad ban is clearly being felt in the market but prices were stagnating before the announcement.
“Cryptocurrencies have taken a series of hard knocks over the last few weeks, from the SEC’s ruling on crypto exchanges to reports of a bear whale with the Mt Gox case.
Google’s new advertising policies are expected to come into effect in June this year.
“The resulting lack of buying opportunities has left even the more seasoned investors with a sense of frustration.
“But just as we’ve come to expect sharp rises from this market, so too should we expect big falls.
Mr Newton added that price fluctuations are an “inevitable” factor in the crypto markets.
Google’s crackdown mirrors Facebook’s similar policies outlined at the end of January, when the social media platform revealed a ban on ICO, binary option and cryptocurrency advertising.