Ethereum's Price Tumbles Below $2,000 Amid Broader Market Downturn
a day ago
2 min read
The cryptocurrency market experienced a significant downturn, with Ethereum (ETH) leading the losses among major digital assets. The decline, which saw ETH fall below the critical $2,000 mark, occurred alongside a broader market slump affecting Bitcoin and other altcoins, influenced by macroeconomic factors and large-scale liquidations.
Key Takeaways
Ethereum's price dropped below $2,000, marking a significant loss.
The overall cryptocurrency market capitalization fell below $2.4 trillion.
Over $260 million in crypto liquidations occurred in 24 hours, primarily affecting long positions.
Broader market trends, including stock market movements and inflation data, contributed to the crypto sell-off.
Ethereum's Price Decline
Ethereum's price saw a notable drop of over 3.8% in the last 24 hours, falling to approximately $1,992. This decline pushed Ethereum below a key psychological and technical support level. Retail sentiment surrounding Ethereum on platforms like Stocktwits shifted to a bearish outlook.
Broader Market Slump
The entire cryptocurrency market felt the pressure, with its total market capitalization dipping below $2.4 trillion, a nearly 2% decrease over the preceding 24 hours. Bitcoin (BTC) also experienced a significant drop, falling below $67,000. Analysts had previously suggested that if Bitcoin could maintain its price above $67,000, a rally to $72,000 might have been possible. However, this support level was lost, contributing to the overall negative sentiment.
Market Influences and Liquidations
The market's downturn was exacerbated by a surge in liquidations, with data indicating nearly $260 million in forced unwinds, predominantly impacting long positions. This suggests a rapid shift in market sentiment and a deleveraging process. The broader economic environment played a role, with stock markets also trading lower in pre-market sessions. Anticipation of wholesale inflation data and heightened geopolitical tensions added to the market's uncertainty, prompting investors to seek safer assets like gold, which saw a modest gain.
Altcoin Performance
Other major cryptocurrencies also suffered losses. XRP saw a decline of over 3.3%, trading around $1.40, with similar bearish sentiment observed among retail investors. Dogecoin (DOGE) dropped more than 3%, Solana (SOL) fell 2.8%, and Cardano (ADA) was down 2.3%. While Tron (TRX) and Binance Coin (BNB) slightly outperformed Bitcoin, they still registered losses of 0.5% and 1.2%, respectively.
Sources
Bitcoin’s Price Drops Below $67K – XRP, Ethereum Lead Losses, Stocktwits.
News Explorer — Bitcoin, Ethereum and XRP Fall Alongside Stocks as Gold Gains, Decrypt.