Ethereum Experiences Over 10% Plunge in Past 24-hours, Main Cause is Bitcoin

It may come as a huge shock to the Ethereum (ETH) community that in the past 24-hours, the price of Ethereum has plunged by 10.11%. Surprisingly, Ethereum is not the only asset that has experienced the plunge in the past 24-hours but the entire crypto-verse has.

As of now, the entire cryptocurrency industry is suffering badly from the plunge and it has been caused by the largest cryptocurrency “Bitcoin”. It was on Friday, December 3, 2021, when shocking news was dropped on the entire crypto-verse.

The news was surrounding the sudden action taken by the regulatory authorities from China. Although the Chinese regulators were slowly removing crypto-related firms from their soil, turns out, they wanted more than that.

The regulatory authorities made a sudden announcement that the entire cryptocurrency sector was fully banned in China. Keeping in mind the history of regulatory crackdowns on facilities, the cryptocurrency firms didn’t make the announcement lightly.

The cryptocurrency firms in China completely dumped their cryptocurrency mining equipment in the country. As a result, the price of Bitcoin experienced a huge dip and it ended up dragging the entire crypto-verse.

Being the second-largest cryptocurrency, it was Ethereum that faced the second-highest plunge in its price in the past 24-hours. When it comes to the trading volume, more investors are reportedly selling their ETH compared to Bitcoin.

This is because while Bitcoin was struggling to cross the $54k figure for the past 2 weeks, ETH was revolving within the 20% window of its all-time high.

The graph showed that in an event of ETH’s price plunge, it would observe a higher sell-off than Bitcoin given the current situation of ETH. Right after the plunge, the relative strength index (RSI) for ETH became bearish. This meant that the price for ETH would experience a higher liquidation than Bitcoin.

As the RSI for Bitcoin was already close to the bearish trend, a sudden plunge was already expected but not at such a large scale. Therefore, as ETH’s price started wilting, the investors started selling ETH with fear of a high bearish market.

The data from CoinMarketCap shows that the trading volume for ETH surged by 120.40% in the past 24-hours. This is a clear demonstration that the investors are selling Ethereum at a large scale.

As for now, the drop rate in BTC’s price has recovered by 2% in the past 24-hours. In the past 60-minutes, BTC’s drop rate in the past 24-hours was over 16%, which at the time of writing has arrived at 13.71%.

At the time of writing, ETH is trading at a price of $4064.13 per ETH and given the rise in its drop rate, ETH’s price may plunge even more.

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