As we reported during the weekend, the market has come under fire. Virtually all cryptocurrencies have been recording losses for more than 48 hours. While some analysts remain optimistic and state that this is merely a correction that will see the market come back stronger, for some investors, panic is setting in.
For Ethereum investors, flash crashes that have come in minutes and hours in the last couple of days, there is fear that the coin is headed for a position below $200. This would not only be a major setback for the asset but would put the asset at risk of more losses.
At the time of press, Ethereum is recording a drop of more than 15% and trading at $226. One notable aspect to today’s move is that volume has increased exponentially with daily volume above $11 billion. This means the latest crash is being driven by a massive sell-off and in the hours to come could easily see Ethereum drop below $200.
Notorious Volatility Is Back, Market Wiping Out Billions In Hours
Other cryptocurrencies have also been suffering in the last 24 hours. Bitcoin, the crypto king, is at the time of press recording a drop of around 7%. With the latest drop, Bitcoin is now trading below $10,400 and looking on track to hitting the $9K region as some analysts have been reporting.
For a majority of other coins, they are recording drops of 5% to 20%. This has since seen the total market cap drop below $280 billion.
Where To Next For Ethereum (ETH)?
Earlier in the day, Ethereum had dropped to the $210 region with some exchanges recording prices below $190. This kind of slip is what the bulls need to avoid if they are to keep their hopes of a rally to highs of $300 intact.
With Bitcoin continuing to have a dominance of over 65%, altcoins will have to wait for the crypto king to turn around its situation before they can begin recording gains. If this happens below $10K, altcoins will have suffered even greater losses, possibly seeing Ethereum reach the $170 region.