IMAGE: ETHEREUM TWITTER
Over the past 24 hours, the price of Ethereum has dropped from a 24 hour high of $2149 to a low of $1862. This is the first time the price of Ethereum has dropped below $2000, after the crypto market crash of May 19. The price of Ehtereum had dropped to $1900 levels around May 22-23, in the aftermath of the global crypto crash. Since then Ethereum had recovered and was sitting comfortably around a price of $2500-2700 over the past few weeks. But the second-largest cryptocurrency in the world saw another drop yesterday on June 21, as the whole crypto market suffered. Read on to know why is Ethereum going down.
Over the past 24 hours, the whole cryptocurrency market has seen a major drop, as Bitcoin saw a major crash in its price. The reason behind this sudden market crash was a direct result of China's continued crackdown on Bitcoin mining and cryptocurrency trading in the country. The cryptocurrency market directly follows the price action of Bitcoin. As the price of Bitcoin rises and falls, the prices of hundreds of other cryptocurrencies follow suit. It's as if their prices are linked to the price of Bitcoin, which in essence they are, as any changes in the price of Bitcoin affects the whole market.
As per a report by the Wall Street Journal, China's Central Bank has ordered the major banks in the country to shut down cryptocurrency trading. The government of China has also been cracking down on large Bitcoin mining farms. As per a report by The Motley Fool, China has also shut down the mining province of Sichuan, which contributed to the majority of China's Bitcoin mining capacity. The China crackdown on Bitcoin and the subsequent panic selling by investors caused the crypto market crash over the past couple of days.
As Bitcoin crashed, the Ethereum price saw a major decrease as well. This lead to many investors asking - will Ethereum crash in the near future? To be fair, crypto predictions are very difficult, as the market is highly volatile. However, it's unlikely that Ethereum will completely crash, as thousands of crypto tokens are built and are functional on the ESC chain. Stay tuned for more updates on cryptocurrencies.