Ethereum the second largest crypto asset by market capitalization has dropped to a staggering 41-month low its lowest level since April 2021.
The crypto asset is battling massive sell-offs and is currently down 52% from its all-time high.
Crypto assets have been reacting to the September downturn with Bitcoin also dropping in price but Ethereum seems like the worst hit with the asset losing the most value when compared to other top 5 crypto assets.
Ethereum Price Drop
The second largest crypto asset has significantly dropped in value this year and is exchanging hands for nearly $2300 at the time of this report.
Ethereum was trading at 0.039 BTC, down by 24% this year and by 35% from the year-to-date high. The asset has also dropped against other top cryptocurrencies like Solana 52%, Binance Coin 0.88%, and Tron (TRX).
Ethereum’s all-time high is $4,878 which it hit on November 2021; the asset is currently trading at $2,312 a 52% drop from its highest price level.
Ethereum Sell offs driving price down
The Ethereum price drop is largely a result of the asset witnessing massive sell-offs of recent. For starters, the spot Ethereum Exchange Traded Funds has underperformed and currently has a net outflow of $581 million. The Ethereum ETFs also hold a total of $6.62 billion in assets which pales in comparison to Bitcoin ETFs which have over $54 billion in assets and an inflow of $18 billion
The Ethereum Foundation and Vitalik Buterin have also sold off Ethereum tokens recently. However, Buterin claims he never sells Ethereum tokens for personal gain.
Vitalik Buterin sold off around $2.2 million worth of Ethereum while the Ethereum Foundation has dumped over 350,000 coins.
Crypto whales are not left out in the sell-offs as their onchain activity shows that they are selling the asset. Nansen revealed that an anonymous crypto whale sold over $10 million worth of Ethereum in the last 24 hours.
Nansen also revealed that Jump Trading a big name in the crypto industry depleted their Ethereum reserves from over $531 million in July to zero.
Besides the sell-offs, Ethereum seems to be losing market share to other Layer 2 network solutions like Polygon, Blast, Base, and Arbitrum which offer faster transactions at a lower cost.
All these factors contribute to Ethereum losing the most value amongst its peers in the top 5 category.
What to Know
- About $493 million worth of Ethereum entered exchanges in the past week as Ethereum whales panicked over its price drop.
- Ethereum’s current price is $2,312 less than half of its all-time high price level.
