Cryptocurrency News

Ethereum Dips Below Crucial Support To Below $2,800 As $70 Million Worth Of ETH Liquidates

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Ethereum is now a top loser in the crypto market today as price value dipped below $2,800. Ethereum and Bitcoin are at the forefront of the crypto market downtrend as bears continue to hold the initiative in the market. 

Stats Sourced from on-chain analytics firm, CoinGlass, reveal that over the last four hours, about 25,440 ETHs holding positions at $71.40 have been liquidated across numerous crypto exchange platforms.

Coinglass’ featured graph highlighted the starting point of the liquidations across platforms. The liquidations commenced the instant Ethereum’s price value started to plunge to its current trade price of $2,793. The leading altcoin hasn’t fielded similar price action since its September 2021 price dump.

Ethereum has lost over 11% of its price value in the last 24 hours.

Ethereum And Bitcoin Dictate Market Trend

As if now, the crypto market is in a downward decline that has seen the world’s largest crypto Bitcoin and its close counterpart, Ethereum spearhead the sell-off. 

Since its emergence, Ethereum is known to closely track Bitcoin’s price action as they both set the general trend for price movement in the market. Being the crypto that features the most diverse utility in the crypto industry, Ethereum enjoys a measure of price stability that faintly reflects Bitcoin’s tracked price action.

However, the current overwhelming market conditions are unfavorable to the BTC and ETH duo as the cross-market featured downtrend heavily impacts price action across all financial markets in the glove. Bears continue to hold the initiative as inflation concerns and the Federal Reserve’s shenanigans worsen already like market conditions, effectively boosting the sell pull in the forex and stock markets.

Major cryptocurrencies are famous for their independence from mainstream finance market space, however price movements of major cryptos like Ethereum and Bitcoin are now mirroring other risk-on assets as they continue to set the crypto market up for unrelenting sell-offs.

According to data provided by CoinGlass over $353 million worth of crypto were liquidated when Bitcoin dipped to $38,000, a testament to how much sway the number one coin holds in the crypto market.

Ethereum’s Deflationary Prospect

Despite the bleak outlook that the leading altcoin currently fields in the crypto market, experts are optimistic about the cryptocurrency’s future as projections and analysis back ETH for run-up price upswings come market-wide correction.

According to on-chain analytics firm, Glassnode, Ethereum’s inflation rate is now lower than that of Bitcoin and has been for some time now. Stats featured on Glassnode’s studio reveal that Ethereum’s inflation rate has been running lower than Bitcoin’s for the last 2 months.

Should Ethereum continue to field these inflation stats, combined with its EIP 1559 upgrade, it is on track to become the first and only deflationary cryptocurrency.

Ethereum’s deflationary prospect is currently at an all-time high; the continual burn of ETH via gas fees leveraged by its new EIP 1559 update combined with its insufficient supply will serve as a strong deflationary pull for the cryptocurrency.

Ethereum is currently the world’s second most valuable cryptocurrency by market capitalization. According to CoinmarketCap Ethereum has a market capitalization of $337.79 billion.

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