Ethereum (ETH) has dropped below R16K for the first time in more than a year, as the entire crypto market continues to plummet, with no immediate solution in sight, at least not yet.
Following Bitcoin’s loss, Ether (ETH) was one of the cryptocurrencies that performed exceptionally poorly, plummeting 7.32 % in a single day. The second most valuable cryptocurrency by market value is trading at R15K, down 37.4 % in the last week.
Looking at the bitcoin market as a whole over the last two weeks reveals that it has been decreasing. Over the last week, the market value of all cryptocurrencies has dropped by about R4.9 billion.
In just 7 days, Ethereum has lost more than half of its value
However, it is not just cryptocurrency that has taken a beating. Wall Street is also in turmoil, with the S&P 500 down 4.25 % in the last week. During the same time period, the Dow Jones Industrial Average declined 4%, while the NASDAQ sank by less than 2%.
When Bitcoin falls, alternative cryptocurrencies fall as well. This downward trend is being driven by Ethereum, which has dropped below R16K for the first time since January 2021. ETH has lost more than half of its value in the last seven days. Concerns about the US Federal Reserve’s 75 basis point rate hike — the greatest increase in three decades – caused a major bear market in both cryptocurrencies and stocks.
BNB slipped below the R3 207 round-number level after a similar daily decrease. To mention a few, Cardano, Solana, Ripple, Dogecoin, Polkadot, Siba Inu, and TRON are all struggling.
Is There Going to Be More Pain?
Analysts warn that further losses are on the way. They said that the Federal Reserve has only recently begun to raise interest rates and has not yet sold any balance-sheet assets.
The U.S. Bureau of Labor Statistics also released data for the Consumer Price Index (CPI) – a metric used to monitor inflation – which came in at 8.6 % for the month of May, influencing cryptocurrency volatility.
Technically, the price of ETH must recapture R16K as psychological support; if this level is crossed to the downside, the token may target R13K as its next target.
The same level served as resistance in February 2018, before a 90% collapse to under R1282 in December 2018.