Ethereum has been severely affected by the recent market downturn, which has wiped out half a trillion dollars from the crypto sector.
The price of Ethereum dropped 23% in under 24 hours, despite the recent launch of the first spot Ethereum exchange-traded funds (ETFs) in the U.S. Ethereum fell from about $2,900 late on Sunday to a low of $2,240 during Monday’s Asian trading session. This is the lowest price ETH has seen since early January and makes it the worst-performing asset among the top 15 cryptocurrencies by market cap.
Ethereum Faces 30% Weekly Loss Amid Market Chaos
Ethereum has dropped 30% over the past week and is down more than 50% from its all-time high. After a dramatic fall in August, the asset had briefly reclaimed $2,300 as the market’s free fall slowed.
In the past 12 hours, crypto liquidations have reached $676 million, with most of this in Ethereum long positions, according to Coinglass. A significant part of this market crash has been attributed to Jump Crypto, which has been offloading hundreds of millions of dollars in assets in recent days.
Ethereum advocate Anthony Sassano views Jump Crypto’s exit as a potentially positive development for the industry, calling the firm a “complete parasite” and suggesting that its departure might benefit the crypto space.
Other contributing factors to the panic selling include weak economic data from the U.S. and Asia, and a tech stock sell-off following disappointing revenue reports from major companies. Analyst and trader Rekt Capital notes that the Bitcoin CME gap has now been filled, which might help stabilize the market.
Bitcoin Hits Lowest Level Since February Amid Massive Market Crash
Bitcoin fell to $52,600 during Monday morning trading in Asia, marking its lowest level since late February. The cryptocurrency has now corrected 27% from its all-time high reached in mid-March.
This weekend’s massive market crash is the largest since mid-2022, when the market collapsed following the Terra/Luna disaster. Over the past week, more than half a trillion dollars has exited the crypto market, causing a 22% drop in total capitalization.
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