• Ethereum dipped to $2,111, aligning with the major downturn in the crypto market.

  • The US and Japanese stock markets experienced a severe downward pull, impacting the global economy.

  • Colin Wu pointed out the surge in ETH gas fees, that had reached 710 gwei.

Crypto reporter Colin Wu highlighted Binance’s insights on the unexpected ETH price drop, which saw Ether (ETH) plummet as low as $2,111.

According to Binance, ETH suddenly plummeted to a low of US$2,111 and then rebounded. The amount of liquidation in one hour has reached 370 million US dollars. https://t.co/4NubMUhFY7 pic.twitter.com/VvmiqfmOQF

— Wu Blockchain (@WuBlockchain) August 5, 2024

As of press time, ETH is trading at $2,350, marking a steep of almost 20% decline in just one day. The token has experienced notable declines of 30% and 20% over the last week and month, respectively. Amidst this bearish trend, investor activity has surged, with trading volume increasing by a massive 127% over the last 24 hours.

The plummet in Ethereum’s price aligns with the broader crypto market downturn. Bitcoin (BTC) has fallen 10.79% in the last 24 hours, currently priced at $54,123. Solana (SOL) dipped to $128.68, down 11%, and XRP reached $0.472, down 15%. Major meme coins like PEPE and DOGE have also experienced losses of 17% and 15%, respectively.

Analyzing Ether’s sudden dip, Wu pointed to the surge in Ethereum gas fees. While the average gas fee is typically 350 gwei, it spiked to 710 gwei when ETH fell near $2,100. The reporter added that if ETH drops to $1,950, $92.2 million in assets in DeFi protocols could be liquidated, with an even larger liquidation of $271 million if the price falls to $1,790.

In a subsequent X post, Wu shed light on the Japanese stock market’s downfall, with the Nikkei 225 and Topix indices plunging by 7% in volatile trading. The US stock market also saw a sharp decline on Friday. This overarching stock market volatility could significantly impact the global economy, as demonstrated by the sudden crypto market crash.

In a subsequent X post, Wu shed light on the Japanese stock market’s downfall, with Nikkei 225 and Topix plummeting by 7% in volatile trading. The US stock market has also seen a severe downswing on Friday. The overarching fall of the stock market could significantly impact the global economy, as demonstrated by the sudden downturn in the crypto market.

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