Ethereum Price Drops 6% Amid Crypto Market Decline

Ecem EFE16/09/20243 Mins read285

Ethereum Price Drops 6% Amid Crypto Market Decline

Ethereum Price Hits Lowest Level Since January as FUD Spreads

Ethereum Price – The price of Ether has experienced a sharp decline, tumbling 6% within the last 24 hours. On September 15, Ether was trading at an intraday high of $2,425 before dropping to $2,260 by September 16. This price drop places the asset back at levels not seen since January. Ether even briefly dipped below $2,200 during flash crashes on August 5 and September 7.

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While the broader crypto market saw a retreat of 4.5%, bringing total market capitalization down to $2.12 trillion, Ether has borne the brunt of the recent downturn. Its price slump has caught the attention of industry observers, with many analysts and crypto personalities on X contributing to a wave of FUD (Fear, Uncertainty, and Doubt) surrounding the asset.

Rising FUD in the Crypto Space

Ethereum developer ‘antiprosynthesis’ took to X on September 15 to comment on the rising negativity, saying, “Half of my feed is ETH FUD at this point.” The FUD wave has seen other industry figures, such as economist Alex Krüger, comparing Ethereum’s performance to Brazilian footballer Neymar Junior.

Crypto analysts James Check and “KALEO” joined in, posting memes that mocked Ether’s price collapse and its declining value against Bitcoin. This trend is compounded by The Crypto Dog, who pointed out to his 820,000 followers that even Bitcoin Cash (BCH) has outperformed Ether over the past year.

ETH/BTC Ratio Hits Lowest Level Since April 2021

The ETH/BTC ratio has now hit its lowest point since April 2021, dropping to 0.038 on September 16, according to data from TradingView. Ether’s price decline comes at a critical time, with the United States Federal Reserve expected to announce a significant rate cut on Wednesday, September 18.

Rate Cut Expectations and Impact on Crypto

As per the CME Fed Watch Tool, there is currently a 41% chance of a 25 basis point rate cut and a 59% chance of a larger 50 basis point cut. Earlier this month, analysts at Bitfinex warned that the anticipated rate cut could trigger a dip in the crypto market.

However, it remains unclear if the macroeconomic environment or specific incidents have directly impacted the ETH market. Notably, former US President Donald Trump survived a second assassination attempt on September 15. The suspect, Ryan Wesley Routh, was apprehended after fleeing the scene.

Interestingly, Ether and other cryptocurrencies saw price spikes following the first assassination attempt on Trump in mid-July. It is yet to be determined if the latest incident will have a similar effect.

FAQs

Why did Ethereum’s price drop by 6%?

Ethereum’s price dropped by 6% due to a combination of market-wide volatility and fear, uncertainty, and doubt (FUD) spreading across social media platforms like X. The broader crypto market also retreated by 4.5%, with Ether taking the hardest hit amid speculations about the Federal Reserve’s potential rate cut.

What is causing FUD around Ethereum?

FUD (Fear, Uncertainty, and Doubt) around Ethereum has been fueled by social media posts from both industry insiders and crypto analysts. Some are comparing Ethereum’s performance to other assets, and others are expressing concerns about the recent price decline against Bitcoin, which has led to a flurry of negative sentiment about ETH.

How does the Ethereum to Bitcoin ratio compare to historical levels?

As of September 16, the ETH/BTC ratio has fallen to 0.038, its lowest level since April 2021. This indicates that Ethereum’s price has weakened significantly against Bitcoin, with analysts and traders pointing to underperformance compared to other cryptocurrencies like Bitcoin Cash.

What role does the Federal Reserve play in Ethereum’s price movement?

The upcoming Federal Reserve decision on interest rates is a key factor influencing the crypto market, including Ethereum. A rate cut, expected to be announced on September 18, could affect investor sentiment and liquidity in the crypto space. There is currently a 59% chance of a 50 basis point rate cut, which could impact ETH prices further.

How has Ethereum performed compared to other cryptocurrencies?

Over the past year, Ethereum has underperformed compared to other cryptocurrencies such as Bitcoin Cash (BCH), which has seen better returns. The broader market also saw a retreat, but Ether was disproportionately affected by the recent downturn, reflecting its struggle to maintain momentum.

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Written by

Ecem EFE

Since 2022, Ecem has been creating digital content, combining her passion for technology with writing. Continuing her education in the Mathematics department, Ecem focuses on producing in-depth content on areas such as blockchain, artificial intelligence, and cryptocurrency. She aims to simplify these topics and present them to a wide audience, sharing valuable insights into the crypto industry through her writing. With her innovative content, she strives to raise awareness in the digital world.