• Latest
  • Trending
Here’s Why Ethereum Just Dropped 15% in 24 Hours

Here’s Why Ethereum Just Dropped 15% in 24 Hours

February 25, 2022
Hodlnaut works with potential buyers to sell firm and FTX claims: Report

Hodlnaut works with potential buyers to sell firm and FTX claims: Report

February 6, 2023
BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

February 6, 2023
DeFi enjoys a prolific start to 2023: Finance Redefined

DeFi enjoys a prolific start to 2023: Finance Redefined

February 6, 2023
Spanish rehab center adds crypto trading addiction to services list

Spanish rehab center adds crypto trading addiction to services list

February 6, 2023
Dingo crypto token flagged as scam over 99% transaction fee backdoor

Dingo crypto token flagged as scam over 99% transaction fee backdoor

February 6, 2023
Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

Bitcoin, Ethereum and select altcoins set to resume rally despite February slump

February 5, 2023
UK is ‘likely’ to need digital currency, says BoE and Treasury: Report

UK is ‘likely’ to need digital currency, says BoE and Treasury: Report

February 5, 2023
Starkware commits to open source its ‘magic wand’ Starknet Prover

Starkware commits to open source its ‘magic wand’ Starknet Prover

February 5, 2023
Visa’s crypto strategy targets stablecoin settlements

Visa’s crypto strategy targets stablecoin settlements

February 5, 2023
Shiba Inu price rebounds 100% after record lows against Dogecoin — more upside ahead?

Shiba Inu price rebounds 100% after record lows against Dogecoin — more upside ahead?

February 5, 2023
What is the global financial crisis and its impact on the global economy

What is the global financial crisis and its impact on the global economy

February 5, 2023
Bitcoin price may retest $20K on US CPI amid absence of soft landing — trader

Bitcoin price may retest $20K on US CPI amid absence of soft landing — trader

February 5, 2023
Monday, February 6, 2023
Retail
  • Home
  • Bitcoin
  • Cryptocurrency
  • Ethereum
  • Blockchain
  • Altcoin
  • ADA
  • Dogecoin
  • Litecoin
  • XRP
  • Regulation
  • Market And Analysis
No Result
View All Result
The Crypto Days
No Result
View All Result

Here’s Why Ethereum Just Dropped 15% in 24 Hours

by marcell.major
February 25, 2022
in Ethereum
0


Man tracking downward performance of asset on a laptop.

Image source: Getty Images

Crypto prices tumble as Russia invades Ukraine.

YOU MAY ALSO LIKE

Visa’s crypto strategy targets stablecoin settlements

Decentralized domain services reflect on industry progress


Key points

  • Russia’s invasion of Ukraine had a significant impact on the crypto market.
  • Ethereum’s price has also been impacted by tighter economic conditions and fears that it could lose market dominance.

Ethereum’s (ETH) price fell almost 15% in less than 24 hours as part of a wider crypto market slump. According to data from CoinGecko, Ethereum’s price fell from $2,746 Wednesday morning to $2,336 on Thursday, though it has risen since. Market leader Bitcoin (BTC) fell by around 11% in the same period.

Why Ethereum’s price fell

The big driver behind Ethereum’s price drop is Russia’s attack on Ukraine. Russian forces invaded Ukraine by land, sea, and air at dawn on Thursday. Several countries have already committed to introducing sanctions, and neighboring countries are preparing to take in refugees. EU foreign affairs chief Josep Borrell tweeted, “These are among the darkest hours of Europe since the Second World War.”

Global equity prices fell across the board, but cryptocurrency prices were particularly badly hit. Ethereum, the second-biggest crypto by market cap, is trading almost 50% down from its all-time high in November. The Russia-Ukraine crisis is the latest of several factors that have impacted Ethereum’s price. These include:

Federal Reserve’s economic tightening

Inflation is the highest it’s been in 40 years. In response, the Federal Reserve will gradually increase interest rates and pull back on other pandemic-related economic stimulus measures. As a result, investors have pulled out of high-risk investments like crypto. The current economic climate is very different from the one that pushed crypto prices to new highs. It’s difficult to know how cryptocurrency will perform in this new, risk-averse economy.

Ethereum’s network congestion and high gas fees

Ethereum was the first crypto to introduce the all-important smart contracts. These pieces of code live on the blockchain and make it possible to program applications and other cryptos. However, Ethereum has been a victim of its own success as it struggles with network congestion and high transaction costs. It needs to upgrade to a more scalable system if it’s to handle the high numbers of transactions.

Ethereum has been in the process of a staged upgrade for some time. The popular blockchain will take another major step in its journey later this year, but the full upgrade won’t be complete until 2023. And JPMorgan analysts warn that this may be too late. According to a January research note, by next year, Ethereum’s competitors could have grown so much that it will no longer be the top smart-contract crypto. One measure is the amount of value locked on each chain — essentially, how much cash is deposited in applications on the ecosystem. According to DeFi Llama, the total locked value for Ethereum is about 60% of the whole market right now. In January 2021, that figure was around 95%.

What this means for investors

It’s rare to find an asset like cryptocurrency that can generate returns of over 5,000% in a year — but the flip side is that prices can also drop dramatically, as we’ve seen in recent months. Unfortunately, extreme volatility is part and parcel of crypto investing.

READ MORE: Best Cryptocurrency Apps

Putting aside the human cost, Russia’s invasion of Ukraine adds yet another layer of uncertainty to what was already an uncertain climate. That’s one reason the price of gold, which many see as a good safe haven, just rose to the highest it’s been all year.

We don’t know what shape additional crypto regulation might take, nor do we know how long this risk-averse investment environment will dominate. If you hold Ethereum, it’s important not to make any panic decisions. It’s not easy to watch the value of your investments plummet, but panic-selling will only lock in your losses. It could also stop you from benefiting from future price increases.

If you invest for the long term, it is easier to wait out what could turn out to be relatively short-term price fluctuations. Remind yourself of your investment strategy and why you originally bought ETH. Viewing the recent three-month slump in the context of a five- to 10-year window may help you keep things in perspective.

Buy and sell crypto on an expert picked exchange

There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide what features that matter most to you.

To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and get started on your crypto journey, today.



Source link

Tags: DroppedEthereumHereshours
ShareTweetPin

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result

Recent News

Hodlnaut works with potential buyers to sell firm and FTX claims: Report

Hodlnaut works with potential buyers to sell firm and FTX claims: Report

February 6, 2023
BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

February 6, 2023
DeFi enjoys a prolific start to 2023: Finance Redefined

DeFi enjoys a prolific start to 2023: Finance Redefined

February 6, 2023

Recent News

Hodlnaut works with potential buyers to sell firm and FTX claims: Report

Hodlnaut works with potential buyers to sell firm and FTX claims: Report

February 6, 2023
BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

BNB Chain on-chain activity bucks bear market downtrend in Q4: Messari

February 6, 2023
DeFi enjoys a prolific start to 2023: Finance Redefined

DeFi enjoys a prolific start to 2023: Finance Redefined

February 6, 2023

Categories

  • ADA
  • Altcoin
  • Bitcoin
  • Blockchain
  • Cryptocurrency
  • Dogecoin
  • Ethereum
  • Litecoin
  • Market And Analysis
  • Regulation
  • XRP

Follow Us

Find Via Tags

Ada Altcoin Altcoins analysis Analyst BIG Binance Bitcoin blockchain BNB BTC Buy Cardano coin Cointelegraph crypto Cryptocurrency DOGE Dogecoin ETH Ethereum eyes FTX Heres Inu Investors Latest Litecoin LTC Market News Price rally Report Ripple SEC Shiba SOL Solana today Token Top trading week XRP

© 2021 The Crypto Days

No Result
View All Result
  • Home
  • Bitcoin
  • Cryptocurrency
  • Ethereum
  • Blockchain
  • Altcoin
  • ADA
  • Dogecoin
  • Litecoin
  • XRP
  • Regulation
  • Market And Analysis

© 2021 The Crypto Days