The cryptocurrency market is experiencing a sharp decline, particularly regarding Ethereum, which has lost a significant portion of its value.
Current State of Ethereum
Over the past 24 hours, the total cryptocurrency market has dipped over 5%, with Ethereum suffering a brutal 9.3% drop, now trading at $1,620, far below the psychological support level at $1,800. The market capitalization of Ethereum stands at $195.3 billion.
Reasons for Ethereum's Decline
There are three main catalysts contributing to the current decline of Ethereum: 1. **Macro Selling Pressure:** Investors are exiting risk assets in favor of stablecoins or fiat. 2. **Asia-Led Selloff:** Asian traders and retail investors are actively selling cryptocurrencies, exacerbating the overall decline. 3. **Heavy Outflows & Sentiment Shift:** Increased outflows from exchanges also contribute to a sharp decrease in interest toward Ethereum.
Ethereum Price Prediction
If this downtrend continues, Ethereum may test the following support levels: - **$1,500:** Minor support level from last summer. - **$1,200:** Stronger support historically tested in 2023. - **$1,080:** Final major floor before entering the three-digit territory.
The market situation remains tense, and further declines in Ethereum's price seem inevitable without positive changes in investor sentiment.
