Ethereum (ETH), which has dropped below $1,000, is the latest sign that the wider crypto market is continuing its slide south. There’s no immediate remedy or relief in sight.
Ether (ETH) was one of the cryptocurrencies that performed particularly poorly, falling 7.32 percent over the past day to follow Bitcoin’s loss. The market capitalization of the second-largest cryptocurrency is currently $950. That’s down 37.4 percentage in the past week.
The entire bitcoin market has fallen over the past two weeks when we look at it as a whole. The decline in market value has been dramatic, with almost $300 billion being lost over the last week.
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Ethereum loses more than half its value in 7 days
However, it is not simply crypto that’s experiencing a major beat-down. Wall Street is likewise in disarray, as the S&P 500 has shed 4.25 percent over the past week. The Dow Jones Industrial Average lost 4 percent and the NASDAQ dropped less than 2 percentage points in the same period.
It is not unusual for Bitcoin to decline. However, other cryptocurrencies also experience a drop. Ethereum has dropped below $1,000 for only the second time since January 2021. Over the past seven days, ETH’s value has fallen more than 50%.
In reaction to worries about the US central bank’s 75 basis point rate hike – the largest increase in the last three decades – both cryptocurrencies and stocks experienced a severe bear market.
ETH market capital at $117 billion according to the Weekend Chart | Source: TradingView.com
BNB saw a similar decline in daily volume and fell below the $200-round number threshold. Cardano and Solana are also experiencing difficulties.
Are You Ready for More?
Analysts warn that there are likely to be more losses. According to them, the Federal Reserve just began raising interest rates. However, it hasn’t yet sold assets.
The U.S. Bureau of Labor Statistics also issued data for the Consumer Price Index (CPI) – a metric used to measure inflation – coming in at 8.6 percent for the month of May, which had an effect on the continuous volatility of cryptocurrencies.
Technically, ETH’s price must reclaim $1,000 as its psychological support; if this level is breached to the negative, the token may target $830 as its next objective.
That same level served as resistance in February 2018 and preceded a fall of 95% to approximately $80 by December 2018.
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Featured image by Futurity. Chart from TradingView.com