The capitalization of the global market for crypto-currencies fell $369 billion over the past week. Ethereum [ETH], as it stands, has taken the biggest hit over the past week among the top 10 cryptocurrencies. But the question is, what conspired against ETH as it plunged to new lows on June 15?
welcome to carnage
For most cryptocurrencies, the bear market signaled a period to adopt stopgap measures and “wait and watch.” However, some major cryptocurrencies have been hit hard during these bearish conditions. On the same subject : Solana Price Prediction 2022 and Beyond – Can SOL Eventually Hit $1,000? – feat. Crypto Academy. Amid the market sell-off, ETH is the hardest hit among the top 10 cryptocurrencies over the past week.
The last two weeks have been particularly difficult for Ethereum. The token has seen massive liquidation volume in the market. Rumors of insolvency regarding Three Arrows Capital, as well as the reorganization of blocks in the Beacon chain have impacted the altcoin.
However, a prominent cryptocurrency analyst, known as “Onchain Wizard” on Twitter, claimed that another huge 3AC sell-off has taken place.
This wallet (tagged 3AC on Nansen) aggressively redeemed AAVE debt against its 223k ETH/264mm position to avoid liquidation. With $198 million borrowed against it, at 85% liquidity, a -11% move in ETH to $1,042 cash pic.twitter.com/2S55Rzl9Xc
— Onchain Wizard (@OnChainWizard) June 15, 2022
Furthermore, ETH could also fall further after the FOMC meeting, as the Federal Reserve is likely to raise the interest rate by 75 basis points.
Ethereum is currently trading at its lowest level in 17 months.
It is down nearly 80% from the all-time high of $4,891 hit by the token in November 2021. Related: Bitcoin (BTC): “Don’t worry, it could be worse. You could be El Salvador” – The country loses 50% of its bet!. But the metrics point to further tumbles for the biggest altcoin in the market.
According to the latest updates from Glassnode, Ethereum data suggests investors are taking massive losses.
In fact, the number of losing addresses reached an all-time high of 38,011,694. This shows how much ETH has fallen during the current crash. Clearly, many investors failed to recover from the Terra crash before they were faced with the current price crash.
With on-chain transfer volume outpacing market cap growth, the NVT signal dropped dramatically. The signal shows another major bearish sentiment after hitting a four-month low at 936.211.
Additionally, the MVRV ratio just hit a two-year low of 0.70, indicating another major sign of capitulation.
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Welcome to the carnage: Here’s why Ethereum is likely to see another drop this week
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