The global crypto market has lost momentum once again after a recovery phase earlier this week with sell-off signals. Ethereum (ETH) price, the world’s second-largest cryptocurrency, is down 6% today, hovering around $1800.
This demonstrates that bears remain in control, and the first week’s surge was nothing more than a bear market rally. With a huge volume of ETH migrating to exchanges, the Ethereum sell-off and other cryptocurrencies might accelerate much further. According to Santiment, an on-chain data provider:
After a long-term move of coins from exchanges that began in August 2020, $2.21 billion worth of Ethereum has returned to exchanges in the last week. This is the longest run of ETH being returned to exchanges since May of 2021.
Ethereum (ETH) price has suffered a major correction, along with the entire crypto market, after a massive surge last year. From the start of the year, the price of Ethereum has dropped by 50%. Furthermore, ETH’s crypto market dominance has been shrinking, falling by over 20% last year to about 18% presently.
Investors Focus Shift Away From ETH Due To Sell-Offs
Institutional investors are losing faith in Ethereum, according to a research released earlier this week by CoinShares. Institutional investors conducted some bottom hunting after last week’s market meltdown. However, they chose to expand their commitment towards other altcoins over Ethereum.
According to the CoinShares report “After the stablecoin UST lost its peg recently, investor’s focus is leaning towards Bitcoin. Here 39% of investors state that Bitcoin has the most promising growth prospects. As they seek to add to assets during market downturn, investors have boosted their holdings in digital assets from 0.5% to 1%. According to the poll, investment to DOT, ADA, and XRP is rising at the cost of Ethereum price dropping.”
Developers have been preparing to release The Merge update to the Ropsten testnet next week, despite the continued price depreciation of ETH
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