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Ethereum settles sub key $2,000 level

Photo of: Joseph Stone
by Joseph Stone

Ether is not resisting the cryptocurrency market trend any better than BTC. The ETH price is now well below the $2,000 mark.

Does Ethereum embody the future of the cryptocurrency industry better than Bitcoin? The question, whose relevance is questionable, is in any case not topical. The last few weeks have been fierce for the two major crypto-assets.

Bitcoin is falling below $32,000. As for Ether, it is now set below the $2,000 mark. Now, according to CoinMarketCap, this has not happened – sustainably – since the very beginning of April.

Moreover, ETH was then on the ascending slope. This last one would allow him to cross in May the 4.000 dollars mark. Enough to make Vitalik Buterin, one of its creators, a billionaire in crypto.

These considerations are no longer relevant since the crash of crypto-assets in mid-May. Ethereum made a brief foray to $1,900 at the May 23 price. However, its value was quickly consolidating in a range between $2400 and $2700.

However, since June 15, the trend is again downward. The ETH was quoting on June 22 at 11:24 am at 1877 dollars, recording a decline of 4.73%. However, the volume of trade is up by 17%.

Trades indeed, but mainly sales transactions. It must be said that over the last 7 days, the Ether has fallen by more than 27%. On June 15, the asset was still quoted at more than 2600 dollars.

The total capitalization of ETH is now close to 218 billion dollars. The euphoric bull run of early May seems a long way off. And while institutional investors may have shied away from BTC for a while in favor of ETH, this strategy is no longer the order of the day.

For the past two weeks, Ether investment products have had negative balances. Last week, capital outflows reached $1.9 million. On 2021, the balance remains positive despite everything.

Year-to-date, bitcoin investment products have generated over $4.1 billion in net inflows. Ether products, meanwhile, have accumulated $992 million since January.

With a major deadline just days away, however, the trend is not encouraging for Ethereum. Ether (ETH) will see its biggest option expiration of the year on June 25. This represents $1.5 billion in open interest.

And why pay particular attention to this expiration? Because the previous such date resulted in a sharp drop in Ethereum’s price. Over 5 days, the cryptocurrency’s price was down 17% to $1,550.