Why is Ethereum’s price declining in crypto market?

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Why is Ethereum’s price declining in crypto market?

Ethereum cryptocurrency
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Highlights

  • For last few days, Ethereum is experiencing a decline in its prices and is trading in red.
  • The broad sell-off in the crypto market could be attributed to the potential Chinese housing bubble crisis.
  • Some other major cryptocurrencies too witnessed a fall in their prices.

On 21 September, at the time of writing, Ethereum was trading at US$3,019.56, down by 8.40%% in the last 24 hours, and has declined by 8.48% over the past one week.

As a result, its market cap was pushed to over US$354 billion.

Related Read: What is Ethereum and how to buy it?

Ethereum price

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What triggered Ethereum’s slump

The crypto market, which looked healthy and had been exuding confidence of late with El Salvador becoming the first country to accept Bitcoin as a legal tender, has suddenly become unenergetic with major coins losing their market share.

Must Read: Bitcoin & Ethereum: Rise and fall of their prices

The drop in prices can be seen mainly on account of market volatility generally associated with cryptocurrencies.

Moreover, the broad sell-off in the digital currency market is driven by anxiousness related to a potential housing bubble crisis looming in China.

Why is Ethereum’s price declining in crypto market?

It is pointed out that Evergrande, the Chinese property developer, is facing a major liquidity crisis, with obligations amounting to hundreds of billions to its creditors.

Interesting Read: Failed attack on Ethereum blockchain affects 0.8% nodes

Other cryptos witnessing a fall in their prices

As mentioned earlier, prices of Ethereum dropped considerably in the past 24 hours as witnessed on Tuesday morning. Elsewhere in the crypto market, some major crypto tokens too witnessed a slump.

Some of the cryptos which are trading in red, at the time of writing on 21 September:

Bitcoin- US$42,927.07 with a drop of 6.04% over the last 24 hours.

Cardano- US$2.13 with a dip of 2.12% in the last 24 hours.

Binance Coin- US$367.11, with a fall of 6.87% in the last 24 hours.

XRP- US$0.9473, with a decline of 4.61% in the last 24 hours.

Solana- US$138.04, with a drop of 5.20% in the last 24 hours.

Polkadot- US$29.13, with a slump of 8.81% in the last 24 hours.

Related Read: When will Cardano overtake Ethereum?

Bottom Line

Crypto markets are marked with volatility and sudden price changes. As long as there is no significant decline, minor price changes in digital currencies can be overlooked. However, crypto investors must invest wisely and cautiously considering their risk appetite.

Also Read: What will Ethereum’s price be at the end of 2021?

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