Ethereum (ETH) fell below $3,000 for the first time in 50 days, causing a shockwave among crypto investors. This drop raises questions about the future of the market.
The decline of Ethereum to $2,871 is part of a broader correction in the crypto market. On July 5, the total market capitalization of cryptocurrencies fell below $2 trillion, a level unseen since February. This widespread decline also affected Bitcoin (BTC), which fell to $54,953.
The reasons for this drop are multiple. The bankruptcy of Mt. Gox transferred 47,229 bitcoins, worth $2.6 billion, to a new address, increasing selling pressure on the market.
Additionally, the German government has transferred 7,583 BTC to exchanges since June 19, further adding to this pressure with a total value of $415 million.
These movements have led to massive liquidations of long positions, including $235 million in Ethereum futures contracts.
Volatility is an inherent characteristic of the crypto market. While it can offer significant gain opportunities, it also carries major risks. Traders who were hoping for stability post-ETF launches are facing a very different reality
The famous economist and crypto-skeptic Peter Schiff recently predicted a drop of Ethereum to $1,500. This forecast, although pessimistic, reflects growing concerns within the crypto community.
Schiff points out that Ethereum is going through critical support levels, and the recent drop below $3,000 seems to prove him right.
However not everything is bleak. Franklin Templeton, a global asset manager, published an optimistic report on Ethereum, highlighting its technological advancements and economic potential
This increased selling context has therefore exacerbated the market correction, raising fears of the end of the recent cryptocurrency bull run.