The Ethereum (CRYTPO: ETH) price got smashed overnight, falling more than 10% at one stage to US$2,206.
At the time of writing, Ether is trading for US$2,311, down 6.3% from this time yesterday.
With the last round of selling the Ethereum price is now down 19% over the past seven days and down 39% year-to-date.
It’s not just the Ethereum price that’s falling
The Ethereum price isn’t the only one getting hammered.
In fact, every one of the top 100 cryptos (a few stablecoins aside) sold off heavily over the past 24 hours.
This comes as investors are increasingly wary of holding risk assets amid a new dawn of rising interest rates. These same fears saw the tech-laden Nasdaq Composite (NASDAQ: .IXIC) fall 4.3% yesterday (overnight Aussie time).
What the experts are saying
Commenting on the sliding Ethereum price and other crypto sell-offs, eToro’s crypto expert Simon Peters said:
The concern now for crypto asset investors is when the slide will end. The market is caught in the wider adversity of investment markets that are battling to decide where comfortable levels are in the wake of interest rate hikes designed to quell soaring inflation around the Western world.
As for why the Ethereum price and most cryptos are trending closely with risk assets like tech shares, Peters said, “This is indicative of the major shift in the presence of institutions within the crypto asset market, which now account for a much greater proportion of ownership and tend to bundle their decision-making on crypto with other major assets.”
What now for the Ethereum price?
Wondering what’s next for the Ethereum price?
Keep an eye on this week’s US inflation numbers, says eToro’s Australian market analyst, Josh Gilbert:
Inflation data coming out of the US on Wednesday will be key to this market correction. If we see inflation start to ease year-over-year and stabilise month-over-month, this could potentially help calm markets.
Either way, Gilbert advises, “Investors should buckle up for a volatile few days ahead.”
Crypto investors would also be wise to “diversify, understand what you are investing in, control your emotions, and never invest more than you can afford to lose”.
Market volatility and underperformance tends to correct in time so what is key now is for investors to ensure they’re happy with their investment cases, and are prepared to stay the course for more volatility ahead.
The post The Ethereum price just got smashed. What’s going on? appeared first on The Motley Fool Australia.
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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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