Ethereum Trades at 18% Loss as Bitcoin Drops to Lowest Point Since May
Bitcoin hit lows of $27,100 on Sunday after recording a loss for the 6th consecutive day.
Meanwhile, Ethereum dropped to $1,462 in the early trading hours of Sunday to reach its lowest point since January 2021.
The fall in the crypto market has been attributed to the UST/LUNA crash that happened in May.
Ethereum dropped to $1,462 on Sunday to reach its lowest point since January 2021, indicating another sign of a bear market.
ETH has been struggling since the start of this year but the latest crash now means that the cryptocurrency is 70% below the all-time high it reached in November. Majority of that decline (50%) has happened in the past 60 days.
The fall in the value of Ethereum has been attributed to several factors, including the UST/LUNA crash and the overall market situation.
Since LUNA’s crash, ETH has lost more than half of its value. Another factor that has played a significant role in the price decline is its postponed Merge.
For several years, Ethereum has promised a switch to proof of stake and that was scheduled to happen this year in June. The switch has however been postponed with estimations showing that it won’t happen till August to November.
The decline in value doesn’t affect Ethereum alone. Most major cryptocurrencies are trading below half their all-time highs.
In the last 24 hours, the crypto market cap had dropped by 7%. It is also set to drop below $1 trillion for the first time since January 2021.