The overall cryptocurrency market has dropped drastically since the last day. While Bitcoin fell below $28,000, it also negatively affected other cryptocurrencies. One of the popular altcoins that experienced the biggest drop on a daily basis was Ethereum (ETH). Ethereum, the second largest crypto by market cap, is changing hands at $1,461, down 8% at the time of writing.
Ethereum at its lowest level since March 2021
Ethereum (ETH), the largest alternative cryptocurrency, dropped to $1,423 on Bitstamp this Sunday. It reached the lowest level since March 2021. The largest altcoin is down more than 70 percent from its November peak of $4,878. According to data provided by Coinglass, ETH, worth $68 million, was liquidated in just 12 hours. The most liquidated positions are long positions opened by traders who are hopeful that the coin will rise.
ETH, with its last drop, has dropped below the 2018 bull run peak of $1,440. According to data provided by cryptocurrency analytics platform Glassnode, ETH is more than 18 percent below its current realized price. The actual price for ETH 2.0 deposits is $2,404, meaning stakers are sitting on losses close to 40 percent.
What do analysts expect?
As noted by prominent cryptocurrency trader Scott Melker, the Relative Strength Index (RSI) has plunged into the oversold territory on its weekly chart for the second time in its history. Since the beginning of the year, Ethereum funds seem to be losing investors’ interest in the top altcoin. Rising stock market reserves and bearish signals also contributed to the decline.
However, Ethereum’s upcoming transition to Proof-of-Stake, scheduled for this year, is expected to be a major boost to the native token of the blockchain. As we reported on Kriptokoin.com earlier this week, developers conducted a successful trial for the long-awaited “Merge” event on the Ropsten testnet.
General forecast for the markets from the analyst
Meanwhile, another well-known analyst Bozokcoin (bozok6) shared his comments about the current downtrend of the markets. Bozokcoin stated that “it is not normal to have so many sales before the weekly closing” and said, “If they are going to sell goods, it would be more logical to make the weekly closing positive and give them at the beginning of the week.” According to the analyst, seeing such sales near the last day of the week “indicates panic sales”.
Bozokcoin, stating that no one can interpret the market completely correctly, warns about 150 thousand followers to “always take your precautions”. The expert states that “a negative news, manipulative news” can cause great harm. Finally, he says, such events can “destroy life for leverage.”
