ETH Sheds 7% In One Day, As The Crypto Market Stumbled: Analysis

ETH sheds 7% in one day and became one of the day’s top losers along with the crypto market that stumbled and took DOGE and UNI with it too so let’s read more In our latest ethereum news today.

Over the past 24 hours, Ethereumd dropped 7.6% falling below the key $3000 mark, and at press time, ETH sheds 7% in one day, trading at $2934 according to Coingecko. Expanding the timeline, we can see a more bullish narrative forming. In the past week, ETH is up by 14.9% since the lows on July 20 when the asset was trading at $1734 and the number two coin increased 70%.

correlated assets
Positively correlated assets (green) typically move together. Source Cryptowatch

However, the move can be attributed to a few things. BTC enjoyed a steady rise from lows at the end of July too. At the time, Bitcoin fell below the crucial $30K price level before mounting a run-up to $45,000 with the leading crypto cooling off today and shedding 4% in the past day. The correlation between these two assets is well known so when BTC  moves, the rest of the markets follow along. Over the past 30 days, the correlation between BTC and ETH has been high and positive. The second reason can be the latest London hard fork.

On August 5, Ethereum executed one of its most anticipated changes which saw the integration of the coin burning feature. The integration known as the EIP-1559 protocol now means that a portion of the fees users pay in ETH to make their transactions will be forever destroyed or burned. The integration sparked discussions among crypto enthusiasts which is considered a bullish event for Ethereum because at least, according to certain commentators, the demand for the asset will continue to rise but as more ETH gets destroyed, there will be a supply constraint. The network is burning about 1.84 ETH per minute or $5,378 which is a decline since the upgrade came into effect a week ago.

ETH weekly
ETH 7-Day Price Chart, Source: Coingecko

Both BTC and ETH haven’t been the only losers today as one of the top cryptos by market cap Doge dropped the most. The popular meme coins are trading at $0.23 which is down by 12% in the past day. Popular DeFi tokens like Chainlink, Aave, Uniswap also hit the skids and the tokens dropped 8.2%, 7.3%, and 8.3% respectively.

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Author: Stefan