Ethereum: What’s the reason behind ETH facing the brunt of this recent crash

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Ethereum has dropped to its low­est point since July 2021 in the after­math of the lat­est cryp­to crash. Stand­ing at $1750 at press time, Ethereum has plunged severe­ly recent­ly suf­fer­ing a near 25% dip in last 24 hours. Experts regard the LFG sell-off as the major fac­tor for this debacle.

The lat­est draw­down in the cryp­to mar­ket has indef­i­nite­ly left a mark on the Ethereum price charts. At the start of 2022, the Ethereum com­mu­ni­ty expect­ed the launch of the Merge by now. They are instead, deal­ing with his­tor­i­cal­ly low prices in these eco­nom­i­cal uncertainties.

ETH falls off a cliff

In the lat­est sell-off, ETH trans­ac­tion vol­ume has sky­rock­et­ed in recent days. Investors are pulling out of their invest­ments after observ­ing bear sig­nals across the mar­ket. The num­ber of address­es send­ing to exchanges reached a 1‑month high today of 2,362.

This high came after a sim­i­lar peak of 2,341 was seen on 19 April, 2022. Sig­nalling bear­ish intent of larg­er num­ber of address­es, this is a par­tic­u­lar­ly wor­ry­ing sen­ti­ment in the Ethereum community.

Source: Glassnode

After the free fall from $2300, ETH has shown an uptick in trad­er engage­ment, accord­ing to data from San­ti­ment. Along with that, there has been an increase in gas usage – which has been cre­at­ing new highs everyday.

Inter­est­ing­ly, the last gas rise cul­mi­nat­ed Ethereum to a short-term bot­tom giv­ing investors anoth­er headache. More bad news could be set to fol­low as the prices have hit $1750 already today.

Source: San­ti­ment

It seems the mis­ery just keeps on pil­ing here for the Ethereum com­mu­ni­ty. The whales seem to be cut­ting off their loss­es after show­ing large activ­i­ty today. Today, whale trans­ac­tions val­ued at $1 mil­lion or more peaked for the first time since Jan­u­ary. With around 3,650 trans­ac­tions, anoth­er met­ric is sig­nalling a bear­ish run for the fol­low­ing days.

Source: San­ti­ment

From the experts

Arman­do Aguilar, Head of Alter­na­tive Strate­gies for finan­cial ser­vices firm Ledn, stat­ed his con­cerns on the sit­u­a­tion. He not­ed that,

 “An increase in trea­sury rates, macro­eco­nom­ic forces and a strength­en­ing U.S dol­lar con­tributed in part to the decline in the over­all cryp­to mar­ket. The LFG sell off added addi­tion­al sell­ing pres­sure and con­tributed to addi­tion­al fear on investors.”

The crash has result­ed in huge loss­es across the mar­ket. Almost cer­tain­ly, it will take time for investor to renew their trust in cryp­to investments.



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