Ethereum has dropped significantly over the past week to a low of $2,122 recently before recovering. In the last seven days, ETH has shed nearly 28% of its value and seen a huge outflow of $146 million from the cryptocurrency. All this is due to a confluence of factors such as increasing fears of a US recession and rising geopolitical tensions.
As of now, Ethereum Price stands at $2,451.28. In the past 24 hours, its trading volume reached $109.91 billion With a market cap of $294.49 billion, securing a market dominance of 15.25%. Despite its recovery from the weekly low, Ethereum still saw a 10.49% decrease in price over the last day.
The sharp decline in Ethereum’s price mirrors broader economic anxieties and market trends. Mounting is the US recession fears as much as economic indicators suggest that growth is slowing, while geopolitical concerns, especially pertaining to key regions, add to uncertainty.
Analyst Identifies $2,000 as Prime Buy Zone For Ethereum
Ethereum has hit a critical support level, around $2,000, according to a popular crypto analyst, Crypto Yapper. The support level is strong, and Ethereum has had a big bounce from it, indicating possible short-term stability.
Crypto Yapper has highlighted this area as the ‘sweet spot’ for accumulation, which is marked with a green box. The analysis shows that it is not afraid of the current price level in Ethereum and looking to be a strategic entry point for new and existing investors alike..
Furthermore, data by Etherscan indicates that as Ethereum’s price approached $2,100, the maximum Ethereum gas fee surged to a stunning 710 gwei at this moment, while the average stands at 350 gwei. This spike in gas fees shows heightened network activity, generally attributed to huge market movements.
However, the situation is still not clean. if Ethereum’s price drop to $1,950, then it is estimated that roughly $92.2 million worth in crypto assets in decentralized finance protocols would face liquidation.
The stakes further surge if the price of Ethereum touches $1,790, putting an estimated $271 million in DeFi assets at risk of liquidation. Such large-scale potential liquidations could further increase overall volatility and make the performance of Ether more paramount for traders and investors alike.
Related Reading | Crypto Assets Face $528M Outflow Amid Market Chaos and Recession Fears
