by Aima Raza
The value of Ethereum decreased by a stunning 53% since it hit its 2024 high and lost $255 billion from its market total. Ethereum’s networking value has decreased from $482 billion to $227 billion with its minimal market worth.
Ethereum’s value decrease is mainly caused by investor wavering confidence. Standard Chartered analysts lower their ETH price prediction from $10,000 to $4,000 due to basic network limitations. The new negative rating influences investors to sell ETH which intensifies its falling value.
Ethereum owners experience multiple losses following this market crash. Santiment data shows that now almost half of all ETH remains unprofitable, the lowest holding rate since last October. ETH investors feel the highest losses in over two years because of its decreasing market value.
Ethereum Traders Win And Lose
During the market crash multiple traders succeeded in making profits through Ethereum’s rapid price drop. CoinGlass records show one trader earned $86 million by selling ETH through Hyperliquid platform.
The trader invested $143 million to sell Ethereum at $3,000 on March 3. The trader hit 25 profits through his Ethereum position as the digital currency dropped to $1,878 on Tuesday. His stated investments led to a funding charge of $3.13 million and he deposited another $5.76 million for the margin requirements. When ETH rises to $3194 his short trading position on the exchange platform will disappear.
While one trader made $5.21 million by placing a long position in Ethereum another trader instead lost $5.21 million when buying ETH . The investor made a long investment of 18.6 ETH at 20 times more buying power. ETH will be automatically sold due to the market volatility when it reaches $1,725.
Ethereum Faces Continued Downtrend
The technical market data indicates ETH may keep falling in price. In its daily price movement Ethereum stays below $2,135 which was the bottom line in its triple-top formation from $4,000.
Recent market events displayed a death cross pattern on Ethereum because its 50-day and 20-day moving averages crossed below each other in February. The digital currency is moving into a bearish pennant setup which starts straight down from a single point then turns parallel. According to market experts the trend line of the triangle nears completion and Ethereum’s price may slip 20% further to $1,500 before ending its decline.
The market watches Ethereum prices closely after its difficulty regaining support from investors. It is unknown if the network will return to stability after this major plunge or continue to decline.
#blockchain #crypto, #decentralized, #distributed, #ledger
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