Ethereum (ETH), the world’s second-largest cryptocurrency, has dropped 6% today to move around $1800 levels thereby intensifying the pressure for a sell-off.
This demonstrates that bears remain in control, and the early week’s momentum was nothing more than a bear market rally. With a huge volume of ETH migrating to exchanges, the sell-off in Ethereum and the larger crypto could accelerate much more. According to Santiment, an on-chain data provider:
$2.21B worth of #Ethereum has moved back to exchanges over the past week after a long-term exodus of coins moving off of exchanges, dating back to August of 2020. This is the most sustained upswing in $ETH being moved back to exchanges since May, 2021.
Ethereum (ETH) has undergone a massive correction, along with the broader crypto market, after a strong performance last year. The Ethereum price has dropped by 50% since the beginning of the year. Furthermore, ETH’s crypto market dominance has been dropping, falling from over 20% last year to under 18% presently.
Institutional investors lose hope in ETH, abandon it in favor of other altcoins
Coinshares reported earlier this week that Institutional investors are losing confidence in Ethereum. After last week’s heavy market crash, Institutional investors did some bottom fishing, however, they decided to expand their allocation to other altcoins at the expense of Ethereum. The CoinShares report stated:
“The recent collapse of stable coin UST has seen investors favoring Bitcoin where 39% of respondents now say it has the most compelling growth outlook. Investors have increased weighting on digital assets from 0.5% to 1% as they look to add to positions during the price weakness. The survey highlights increasing allocation to DOT, ADA and XRP at the expense of Ethereum”.
Despite the continued price erosion of ETH, developers have been preparing to implement The Merge upgrade to the Ropsten testnet next week.
