Ethereum’s market took the worse turn.
ETH’s price has crashed by 10% in a sudden market downturn. As of now, the price of ETH is $1,513. The downward trend started at around 1:14 PM when Ethereum was worth $1,626. And then the market began to tank, it hasn’t recovered yet.
Ethereum’s crash came a day before the Chicago Mercantile Exchange launched ETH futures. The CME’s futures are supposed to bring loads of money to Ethereum since it comprises a regulated, adequate way for institutional investors to predict the coin’s future price.
It might also be the case that traders are leaving their positions before the listing; CME’s ETH futures contracts will make it a lot easier for institutional investors to short ETH – or bet against it.
CME launched Bitcoin futures last December 17, 2017, the day after Bitcoin hit its highest price during that bull run, $18,015. After that, Bitcoin’s price went downhill, marking the end of the bull run. With that being said, 2021’s crypto market doesn’t look like 2017.
Ethereum’s crash coincided with an overall market slide. Bitcoin has fallen by 7% in the last 24 hours to $37,547; XRP is down by 10% to $0.39 and Polkadot is down by 8% to $18.7.
Some cryptocurrencies stayed the way they are. Cardano (ADA) is worth $0.58, an 8% increase in a day. And Dogecoin, the meme-coin supported by Elon Musk, Snoop Dogg, and Gene Simmons is up 35% yesterday and 116% in the previous week.
The crash can be as simple as a market correction. Ethereum’s price hit an ATH of $1,756 on February 5 and hit similar prices yesterday. When the cryptocurrencies hit a new peak, they sometimes retrace their steps in the next few days. Bitcoin, which hit $42,000 last month, retreated to lows of $31,500 later in the month. The drops could occur because a specific price triggered a lot of traders to sell their positions in the market; the dump causes a price crash.
Other traders see an opportunity in the dip, anticipating that the market will bounce back.