Ethereum (ETH) is still a major player, but getting broader acceptance is becoming more difficult. Furthermore, according to a recent analysis by 10x Research, Ethereum represents this bull run’s “basket case.“ This has sparked worries about the ETH price trend going forward because it recently lost traction at a critical level.
Will The Price Of Ethereum Keep Falling?
According to 10x Research, despite Ethereum’s crucial role in enabling DApps and the NFT market, its weak fundamentals have become a cause for concern. The correlation between these crypto behemoths negatively affects Bitcoin’s trajectory. Furthermore, the Ethereum ecosystem is doomed due to the weak fundamentals.
Ethereum was positioned as a revolutionary force that would replace established banking systems during the previous cycle. However, its failure to swiftly address scalability issues and adapt to changing market dynamics has left it to catch up. However, Bitcoin has now eclipsed ETH as the digital gold standard. With an R-square of 95%, the correlation between Ethereum and Bitcoin is still remarkably high in the interim. This emphasises how closely related the two biggest cryptocurrencies are. Because of this, Ethereum’s problems are acting as a “roadblock“ for Bitcoin, preventing further inflows of fiat money into the cryptocurrency market.
The lower volume of inflows is also why Ethereum’s price is plunging worse than Bitcoin’s. Furthermore, FTX has started disposing of ETH to finish the liquidation process. In addition, hackers are using Tornado Cash to dispose of the ETH they have stolen.
Experts caution against investing in Ethereum, citing price projections that point to a further decline. The impending decline became apparent as the price of ETH extended below $3,132.80. The breach of this critical support level implies continuing the negative trend, with the next target set at $2,905.30.
However, the bearish trend might end if Ethereum can break above $3,132.80. On Tuesday, May 6, at the time of writing, the price of ETH had decreased by 3.10% to $3,078.99. Moreover, the second-largest crypto by market cap attained a low of $3,027.59 amid the decline today.
Hackers & FTX Dump ETH
FTX, the bankrupt crypto exchange founded by Sam Bankman-Fried, has expedited its liquidation spree lately. The organization has sold more than $12 million of Ethereum since this week. Peck Shield Alert’s blockchain tracker brought attention to two transactions in which $6.3 million and $6.17 million worth of ETH were transferred, respectively.
This Ethereum dump was directed at Wintermute and Coinbase. Meanwhile, Tornado Cash has been used by cryptocurrency hackers who pilfered Ethereum assets to conduct anonymous transactions and make money. According to a post on X Peck Shield Alert, Poloniex hackers moved 200 ETH to Tornado Cash and are said to have compromised $125 million worth of cryptocurrency assets.
In addition, hackers from Kronos Research, who stole $26 million in cryptocurrency, entered the battle. They sent 200 ETH to Tornado Cash and moved $4 million in Ethereum to another wallet so they could start using Tornado Cash for money laundering.
