- The Ethereum price has extended below $3,100 due to weak network fundamentals and significant offloading by FTX and crypto hackers.
- Despite Ethereum’s pivotal role in facilitating DApps and the NFT market, its weak fundamentals have become a cause for concern.
- FTX, the bankrupt crypto exchange, has offloaded over $12 million worth of Ethereum, while crypto hackers are leveraging Tornado Cash to get rid of the stolen ETH funds.
As Ethereum’s price dips below $3,100, weak network fundamentals and significant offloading by FTX and crypto hackers could worsen the situation. This article explores the factors contributing to Ethereum’s price decline and its future prospects.
Ethereum’s Struggle Amid Weak Fundamentals
Ethereum, despite its central role in facilitating DApps and the NFT market, is facing challenges due to its weak fundamentals. A recent report by 10x Research suggests that Ethereum is the “basket case” in this bull run, raising concerns about the ETH price’s future trajectory.
Impact of Ethereum’s Struggles on Bitcoin
The correlation between Bitcoin and Ethereum remains strikingly high, with an R-square of 95%. This underscores the interconnectedness of the two largest cryptocurrencies. Hence, Ethereum’s struggles are proving to be a “roadblock” for Bitcoin, hindering broader fiat inflows into the crypto ecosystem.
FTX and Crypto Hackers Offloading ETH
FTX, the bankrupt crypto exchange, has expedited its liquidation spree lately. Since the beginning of this week, the organization has offloaded over $12 million worth of Ethereum. Meanwhile, crypto hackers who stole Ethereum funds have been using Tornado Cash for anonymized transactions and realizing profits.
Conclusion
Analysts warn of further downside for Ethereum, with price predictions suggesting a further dip. However, if Ethereum manages to breakout above $3,132.80, the bearish trend could be over. As the crypto market continues to evolve, the future of Ethereum remains uncertain.
