As a seasoned crypto investor with battle-scarred fingers from the past market corrections, I find myself bracing for another turbulent ride. The recent Ethereum price drop of 37% in just six days has sent chills down my spine and reminded me that the crypto market is indeed unpredictable.
In the last six days, the Ethereum price has fallen by 37%, following a correction in the crypto market. This downturn coincides with economic recession concerns. Interestingly, this selling trend isn’t confined to cryptocurrencies alone; it is also reflected in traditional stock markets.
Why is Ethereum Price Crashing?
The cost of Ethereum mirrored Bitcoin‘s decline and dropped approximately 37% from July 29 onwards. Surprisingly, investors who anticipated a surge in ETH‘s value due to the approval of the spot Ether ETF were taken aback by this unexpected drop in price.
As a seasoned investor with over two decades of experience in the financial markets, I have witnessed numerous market corrections throughout my career. The recent correction we are currently experiencing is particularly concerning given the combination of three macroeconomic factors: the Federal Reserve’s decision to maintain high interest rates, disappointing job data, and the sudden rate hike by the Bank of Japan at the end of July.
Regarding cryptocurrencies, it was recently reported that Jump Trading moved approximately $46 million in Ether from staking to centralized trading platforms. This action could potentially make it more challenging for supporters of Ethereum (bulls) as the increased supply on exchanges might put downward pressure on its price.
Read more: Reasons Why Bitcoin Price Crash Could Continue
What can ETH holders expect?
In simpler terms, the cost of Ethereum is being tested against the support levels of $2,190 and $1,927 from a technical perspective. If the broader economic situation improves, there’s a possibility of an upward movement in price for Ethereum. On the flip side, if the economy takes a turn for the worse, predictions suggest that Ethereum’s price may fall further and retest the $1,627 support level.
Over the past eight days, starting from July 29, I’ve observed a significant sell-off by Ethereum whales holding between 100,000 to 1,000,000 ETH. This massive selling has amounted to approximately 430,000 ETH. Considering the current market price of $2,267 per ETH, these institutional holders have offloaded a staggering $974 million worth of Ethereum during this period.
Investors should exercise caution when considering purchases during market downturns, as there’s a possibility that the markets may continue to fall. If economic recession occurs, Ethereum and other cryptocurrencies, along with traditional stocks, could experience further price declines. Essentially, it might be wise to brace for potential losses in these riskier assets.
Read More
- ENA PREDICTION. ENA cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- USD PHP PREDICTION
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- SHIB PREDICTION. SHIB cryptocurrency
- Red Dead Redemption: Undead Nightmare – Where To Find Sasquatch
- USD COP PREDICTION
- USD ZAR PREDICTION
- FLOKI PREDICTION. FLOKI cryptocurrency
2024-08-05 16:36