Why is Ethereum (ETH) price down today?

On top of regulatory headwinds, Ether price has actually followed the direction of Bitcoin (BTC) rate which lost the key $27,000 assistance level on May 17. Source: CryptoQuantRelated: Ordinals turned Bitcoin into a worse variation of Ethereum: Can we fix it?The rush of Ether liquidations comes as Ethereum trading volume, is down from a March 11 peak of $24.8 billion to just $1.9 billion. Source: CryptoQuantRelated: Bitcoin cost capitulation listed below $26K increases as Fridays BTC options expiration loomsHigher net deposits on centralized exchanges may translate to higher selling pressure and paired with decreased trading volume, Ether price could drop further.Investor expectations for 2023On May 12, the Ethereum Beacon Chain experienced concerns completing orders, causing deal hold-ups for over an hour.
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The Ether price drop comes a day after Chinese district attorneys vowed to split down on the NFT market.Ether price was dealt another blow with legislators in the United Kingdom declaring that crypto possessions ought to be controlled like gambling due to the high-risk nature of investing. On top of regulatory headwinds, Ether price has actually followed the direction of Bitcoin (BTC) cost which lost the essential $27,000 support level on May 17. Source: CryptoQuantRelated: Ordinals turned Bitcoin into an even worse variation of Ethereum: Can we repair it?The rush of Ether liquidations comes as Ethereum trading volume, is down from a March 11 peak of $24.8 billion to just $1.9 billion. Source: CryptoQuantRelated: Bitcoin cost capitulation listed below $26K boosts as Fridays BTC options expiry loomsHigher net deposits on centralized exchanges may equate to greater selling pressure and combined with decreased trading volume, Ether cost could drop further.Investor expectations for 2023On May 12, the Ethereum Beacon Chain experienced issues settling orders, triggering deal hold-ups for over an hour.

Other Questions People Ask

Why is Ethereum (ETH) price down today due to regulatory issues?

Ethereum's price is facing downward pressure partly due to regulatory headwinds, particularly in the UK, where legislators are advocating for crypto assets to be treated like gambling. This sentiment creates uncertainty among investors, leading to increased selling pressure. Additionally, the recent crackdown on the NFT market in China has further dampened investor confidence, contributing to the decline in Ether's value.

How does Bitcoin's performance affect Ethereum (ETH) price today?

The price of Ethereum (ETH) has closely followed Bitcoin's trajectory, especially after Bitcoin lost the critical $27,000 support level on May 17. This correlation means that negative movements in Bitcoin often lead to similar declines in Ethereum's price. As Bitcoin struggles, it creates a ripple effect that impacts investor sentiment and trading behavior for Ether.

What impact does trading volume have on Ethereum (ETH) price today?

Today's drop in Ethereum (ETH) price can be attributed to a significant decrease in trading volume, which has plummeted from a peak of $24.8 billion on March 11 to just $1.9 billion. Lower trading volume often indicates reduced market activity and liquidity, making it easier for prices to fall. Coupled with higher net deposits on centralized exchanges, this situation may lead to increased selling pressure on Ether.

Are there any technical issues affecting Ethereum (ETH) price today?

Yes, technical issues have also played a role in the decline of Ethereum's price today. On May 12, the Ethereum Beacon Chain experienced problems completing orders, resulting in transaction delays of over an hour. Such operational challenges can undermine investor confidence and contribute to price drops as users may hesitate to engage with a network facing reliability issues.

What are investor expectations for Ethereum (ETH) price in 2023?

Investor expectations for Ethereum (ETH) in 2023 are currently clouded by regulatory concerns and market volatility. The recent developments, including increased scrutiny from regulators and the decline in trading volume, suggest that investors may adopt a more cautious approach moving forward. As the market navigates these challenges, potential buyers might wait for clearer signals before committing to investments in Ether.