Ethereum's Price Plunge: What's Driving the Downturn?
Ethereum's Price Plunge: What's Driving the Downturn?
The cryptocurrency market is experiencing significant volatility, with Ethereum (ETH) leading a broader downturn that has seen over $140 billion wiped from the market value since the beginning of the week. This recent dip pushed Ether's price below the critical $4,000 mark, reaching its lowest point in nearly seven weeks and raising concerns among investors and analysts alike. On Thursday, Ether, the second-largest cryptocurrency by market capitalization, saw a substantial drop of as much as 4.7%, trading at $3,969. Bitcoin (BTC), the market's dominant cryptocurrency, also felt the pressure, albeit with a more modest decline of 1.7%. This widespread retreat highlights the interconnected nature of the digital asset space and the factors influencing its short-term movements. Understanding the Market Shift Several key factors appear to be contributing to Ether’s recent decline. Rachael Lucas, a seasoned crypto analyst at BTC Markets, pointed to a cooling of institutional inflows as …