Thursday, April 18, 2024

Ethereum Price Falls Alongside Bitcoin, ETF Approval Delays Add Pressure.

Tuesday saw a low of $3,362 for Ethereum (ETH) as a result of a drop in Bitcoin that put a significant portion of the cryptocurrency market in negative territory. Although historical data indicates that Q2 has been an averagely strong month for the largest altcoin, ETH had a rough start to the second quarter. Long-term growth may also be indicated by Vitalik Buterin’s piece outlining how The Purge could strengthen Ethereum’s decentralisation.

Daily digest of marketmovers: The Purge, historical Q2 gains, and liquidations

The US Securities and Exchange Commission (SEC) has not yet indicated that it will approve applications for a spot Ethereum ETF; thus, Ethereum’s chances of seeing a big price increase are questionable. Because of this, rather than its own fundamentals, the majority of its price fluctuations in recent months have been caused by its strong link with Bitcoin.

For instance, in the last day, Bitcoin lost about 6% of its value, which caused Ethereum to see a decrease of more than 6.7%. Over $500.6 million in losses from the whole cryptocurrency market were liquidated in the last 24 hours due to losses in the two biggest cryptocurrencies, with the largest liquidation order valued at $7.48 million. Long investments make up $75.1 million of the $91.91 million in total ETH liquidations.

Nevertheless, past data indicates that Ethereum might still have a successful second quarter in spite of the dismal beginning. Ethereum’s Q2 statistics, according to a graphic on X by cryptocurrency expert @ali_charts, have consistently been favourable, with the exception of 2022, when it had a 67.34% loss.

He did, however, add that there is a “high probability” that the SEC will postpone approving a spot Ethereum ETF, which might lead to “turbulence in the market.” On the other hand, Ethereum would receive greater institutional support and exposure to a large number of retail traders if the SEC gave its approval, which might lead to a price increase.

Vitalik Buterin, the co-founder of Ethereum, also shared some observations that point to the long-term growth of the cryptocurrency and the ecosystem that supports it. He made note of the introduction of the EIP-6780, a lesser-known Ethereum improvement proposal (EIP), during the most recent Ethereum Dencun upgrade in a blog post on Monday. He stated that a significant portion of “The Purge” is EIP-6780.

“Slim down Ethereum and clear technical debt,” Buterin claimed, was made possible by the Purge. Essentially, according to Buterin, it would move effort away from the main chain, lowering the computational and technical requirements of maintaining an Ethereum node while simultaneously increasing decentralisation and security.

In unrelated news, Vitalik Buterin published a previously written blog post on Tuesday that addressed squashing Layer 3s, which have the same function as L2s. According to him, L3s are only useful if they fulfil a distinct scaling function from an L2.

Technical Analysis: $3,000 might be the bottom for ETH.

According to a study published on X on Monday, @ali_charts stated that if Ethereum broke through the $3,400 support level, it might drop to $2,800. At the time of writing, the price of Ethereum is approximately $3,362.1. But a high previous bid in the $3,200–$3,000 range was pointed out by another X user.

This is consistent with prior forecasts made by FXStreet analyst Akash Girimath, who said that if Bitcoin doesn’t bounce back from its short-term liquidity run, Ethereum’s price might sweep the range low at $3,054.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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