Ethereum’s price is currently less than half of its all-time high.
Ethereum’s value fell below $ 2,000 for the first time since April 7. The price of the cryptocurrency is currently less than half of Ethereum’s all-time high on May 12 – just eleven days ago. ETH is trading at $ 1,940 at the time of writing.
Ethereum’s market capitalization has halved on May 12, from the highest levels of about $ half a trillion to current levels of about $ 230 trillion.
Ethereum dropped roughly 20% the past day and more than 45% last week. This is much more than the decline experienced by Bitcoin, which is currently the largest cryptocurrency at a market cap of around $ 34,000; Bitcoin had fallen by about 12% in the last 24 hours and about 30% in the last week.
Ethereum’s recent decline follows a two-week tough news for the crypto market. This situation; It began on May 12 – the day when Ethereum was at its all-time high – when Elon Musk announced that Tesla would no longer accept Bitcoin, citing environmental concerns.
Ethereum uses the same energy-intensive Proof of Work mining mechanism as Bitcoin. However, later this year, the Ethereum Foundation is expected to switch to an energy-efficient consensus algorithm called Proof of Stake, which it promises will make Ethereum 99.5% more energy efficient.
More than one bad news came from China this week. On Wednesday, three Chinese payment and banking companies warned that cryptocurrencies are highly speculative and harmful to a healthy society. On Friday, a government official added crypto mining to the list of industries that should be watched closely to ensure economic and social stability.
Most of the world’s cryptocurrency mining operations are located in China, as miners benefit from cheap electricity rates. When the news came together, it shook the markets and sent the price of Ethereum to free fall.