ETH price stuck around $1100 after falling below this level. Data shows the massive altcoin sell-off is far from its end.
The US Federal Reserve aims to boost interest rates once again.
But this time the rates could rise by 75 basis points, which was caused by the highest inflation in May and an awful consumer price index report.
The decision is to be released this week, and it has already led to financial markets drop. As a high-risk asset, crypto reacted accordingly. With 30% week-to-week Bitcoin fell.
Some say that altcoins (Ethereum in particular) would be affected way worse.
What happened to ETH price?
Ethereum lost $700 of its price during the last five days. At the time of writing the coin trades at around $1100.
Touching the lowest point makes the great estrangement of ETH from its $4870 all-time high on November 10, 2021. But the data shows that the token sell-off is far from its end and the real bottom isn’t reached yet.
According to the trading view, by May 10, 2022, Ethereum had 563 160 active addresses. It is in the lower range during the past couple of months.
“Considering how weak active addresses and TVL (total value locked) data were before the recent price correction, investors should be extra careful when trying to predict a market bottom,” Cointelegraph’s Marcel Pechman wrote.
Some even predict that such a price decline could bring ETH to the beginning of 2018 point when the coin abruptly fell to $375.
But the good news is Ethereum still has over 90 percent of the NFT market. “This is going to be a very important year for Ethereum, a kind of a make-or-break year,” the global crypto leader of PWC Henri Arslanian says.
What is with the Merge?
At these harsh times, Ethereum is also a month away from the biggest update in its history. The poS-consensus transition should make the Ether network more environmentally friendly and deflationary.
But changing miners on stakers could also play a bad joke on the crypto.
“Ethereum is in trouble and we don’t see a quick way out. The entire idea of staking Ethereum was nonsense from the start, as we pointed out months before the first anticipated launch date for Merge last year,” crypto research at trading platform Uphold Martin Hiesboeck has commented on the topic.
According to him, the growing number of decentralized finance hacks that are happening on the Ethereum network is the main concern for current ETH investors.
But now the record ETH price drop makes them worry much stronger.
Sources: Cointelegraph, iNews, Forklog