Second largest in the world by total market value cryptocurrency the one which… Ethereum (ETH), With the continuation of the decline in the market, it fell below $ 2,000 on May 20.
The Number of Addresses in Loss Rises to the Highest Level in the Last Two Years
According to the tweet by the on-chain analysis platform Glassnode, the number of Ethereum addresses that were at a loss at the time of this writing reached 33,403,723, the highest level of the last 2 years.
The hourly chart shared by Glassnode also shows that the number of addresses in loss has been on the rise since the beginning of 2022.
📈 #Ethereum $ETH Number of Addresses in Loss (7d MA) just reached a 2-year high of 33,403,723.452
View metric:https://t.co/eTr2V1rqmQ pic.twitter.com/0L8P6E32iW
— glassnode alerts (@glassnodealerts) May 21, 2022
The Impact of Rate Increases in the USA Affects the Cryptocurrency Market
It seems that the market is trying to digest the US Federal Reserve’s (FED) aggressive approach to curb inflation by increasing interest rates. Risk asset prices have been extremely volatile throughout the year, with ETH price falling to $1,800 last week, its lowest point since July 2021.
As it is known, Ethereum price usually follows the price movements of Bitcoin. However, the big update called “merge” in front of ETH seems to affect the future of this token.
However, market participants think that the crypto market reflects global concerns about the war in Ukraine, rising inflation and the changing monetary policy of the US government. In addition, it seems that there has been some concern among investors as countries have been more willing to regulate the crypto market lately.
At the time of this writing, ETH price is hovering just above $2,000 with the slight recovery in the market. The world’s largest altcoin also rose 2.89% in the last 24 hours. The market cap of the altcoin is currently around $243 billion.
*Not investment advice.