In early 2023, the world faced geopolitical tensions that led to a serious threat of war in different parts of the globe. These tensions created instability in global financial markets, including cryptocurrencies. Ethereum, which was valued at around $2,000 at the time, found itself under pressure due to these geopolitical events.
Simultaneously, many countries began serious discussions about legalizing and regulating cryptocurrencies in an attempt to control their use. This caused concern among investors and traders, as they feared that stringent regulations might diminish the anonymity and freedom that had characterized cryptocurrencies in the past.
During the hostilities, many major cryptocurrency exchanges were at risk, and their operations were disrupted, further eroding trust in digital assets. Investors began selling Ethereum and other cryptocurrencies to reallocate their assets into more stable and traditional assets, such as gold and fiat currencies.
The combination of these circumstances led to Ethereum's price falling below the $2,000 mark. However, many cryptocurrency communities and developers continued to work on improving the network and expanding its capabilities, hoping for a restoration of trust and steady growth in the future.
