Ethereum, the world’s second-largest cryptocurrency, has experienced a highly volatile week, with its decline worse than most other major assets. According to Coinmarketcap, Ethereum hit its lowest price of 2024 after plummeting nearly 8% within 24 hours. ETH dropped to $2,193—a level not seen since last year.
At its current price, Ethereum has erased all the gains made during the first three months of 2024, signaling a concerning trend for the world’s second-largest cryptocurrency.
Recently, ETH has been heavily impacted by negative news surrounding network activity and controversy over the Ethereum Foundation’s token sales. Although Ethereum ETFs have been introduced, they have done little to improve the situation, as weak buying interest has allowed outflows to dominate.
Bitcoin, the largest cryptocurrency globally, has also experienced a significant downturn in recent days. In the last 12 hours, Bitcoin’s price has fallen from $57,000 to $52,700, its lowest point since the August dump to $49,000. While the price has since slightly recovered to $54,000, it still suffered a 5% loss over the past 24 hours.
The recent Bitcoin sell-off is driven by the weak U.S. labor market, fears of a technology bubble, and regulatory issues. Pessimistic investor sentiment and outflows from Bitcoin ETFs have intensified the price drop.
Over the past week, U.S. Bitcoin ETFs saw outflows of up to $200 million, raising concerns about whether the $50,000 price level can hold, especially as the market braces for the upcoming interest rate adjustment from the Federal Reserve (Fed) in mid-September.
The total cryptocurrency market capitalization has decreased by 4.7%, dropping to $1.9 trillion, falling below $2 trillion for the first time since February. According to Coinglass, out of the $296 million liquidated, long positions accounted for 75.6% ($220 million), indicating growing investor anxiety.
Related news: Altcoin Market: Signs of Hope Amidst Prolonged Downtrend
