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Why is ETH falling so fast (ETH continues to fall)?

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Why is ETH falling so fast? According to Glassnode data, the current price of E

Why is ETH falling so fast (ETH continues to fall)?

Why is ETH falling so fast? According to Glassnode data, the current price of ETH has fallen below $30,000. Since November 2020 (the first two weeks of April 1st to September 30th), the price of ETH has risen by over 30%.

Although ETH experienced a significant rebound after a brief consolidation, it is currently around $300. However, as Bitcoin continues to decline and recent bullish trends cause another surge in the price of Ether, there has been a certain level of resistance in the ETH/USDT trading pair, while the number of active addresses on the Ethereum network continues to grow steadily.

ETH price trend source: TradingView.com

Due to investors perceiving market sentiment as unstable, the price of ETH has sharply increased in the past 24 hours.

According to CoinMarketCap data, the total locked value on the Ethereum blockchain has now exceeded $14 billion, more than double from the beginning of the year. Although in the past week, the overall increase in Ethereum on-chain transaction volume may be attributed to a decrease in ETH supply and expanding demand, it does not necessarily mean that Ethereum will maintain its downward trend in value. “The reason for such market volatility with ETH,” explained Ethereum founder Vitalik Buterin, “we can speculate that this situation might be due to a large-scale sell-off of ETH and people’s concerns that future prices may continue to rise.”

However, based on the current price, there is still significant downside potential for ETH. According to BitInfoCharts data, the circulating market value of ETH has surged by 500% in less than a year, reaching a record-breaking $10 billion, making it the largest cryptocurrency asset market value change in history.

At the same time, the amount of ETH staked in the Ethereum network is rapidly increasing to new highs.

According to IntoTheBlock data, the total number of daily validators for Ethereum is 200 million, with approximately 200,000 active stakers.

The latest upgrade of Ethereum 2.0’s deposit contract is expected to launch later this quarter.

However, after its release, the Ethereum mainnet has not been updated. According to Etherscan, the average block time for Ethereum is around 7 days, slightly lower compared to early December last year. This means that miners have to reallocate their computing power to maintain their income.

To ensure the security of the Ethereum community, developers have decided to implement a new proposal. The new proposal includes some key parameters such as gas costs, block size limits, or fewer proof-of-work algorithms, etc. All of these require clients to maintain the software and run nodes, making the Ethereum blockchain increasingly secure.

Additionally, there are also suggestions for Ethereum improvement proposals and other significant changes. For example,

ETH Continues to Fall

According to Huobi BTC perpetual contract market data, as of 18:00 today (GMT+8), ETH is currently trading at $170.14 (+0.15%), with a 0.010000% settlement funding rate at 20:00 (GMT+8).

Last night, Ethereum experienced a significant decline. According to Huobi delivery contract data, the overall position volume continued to shrink. Among them, the long-short ratio is 61%/39%, and the quarterly contract’s discount is nearly $20. The total position volume has risen to $1.6 billion, and the proportion of elite account long positions has increased. With the decrease in the future quarter’s premiums, market panic is expected to ease in the next two days.

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