The global crypto market cap has fallen by $369 billion in the past week. Ethereum [ETH], as it stands, took the biggest hit in the top 10 cryptocurrencies in the past week. But the question is, what conspired against ETH as it plunged to new lows on June 15?
Welcome to the massacre
For most cryptocurrencies, the bear market has indicated a period to take emergency measures and “wait and see”. However, some major cryptocurrencies have been hit hard during these bearish conditions. Amid the market sell-off, ETH has been the hardest hit in the top 10 cryptocurrencies for the past week.
The last two weeks in particular have been very tough for Ethereum. The token had a huge liquidation volume in the market. The insolvency rumors regarding Three Arrows Capital, as well as the block reorganization in the Beacon Chain, have had an impact on the altcoin.
However, a prominent crypto analyst dubbed “Onchain Wizard” on Twitter claimed another massive liquidation of 3AC.
This wallet (labeled 3AC on Nansen) has aggressively repaid AAVE debt at its 223k ETH / $264mm position to avoid liquidation. With $198mm in loans against it, @ a threshold of 85% liq, a -11% move in ETH to $1,042 liquidates it https://t.co/y7yJJ0NlMc pic.twitter.com/2S55Rzl9Xc
— Onchain Wizard (@OnChainWizard) June 15, 2022
In addition, ETH may also fall further after the FOMC meeting, as the Federal Reserve is likely to raise interest rates by 75 bps.
The bottom ringing
Ethereum is currently trading at its 17-month low. It is down nearly 80% from its all-time high of $4,891 the token stood at in November 2021. But the statistics point to further declines for the largest altcoin on the market.
According to the latest Glassnode updates, Ethereum’s data suggests that investors are suffering huge losses.
The number of lost addresses even reached a record high of 38,011,694. This shows how far ETH has fallen during the current crash. Obviously, many investors were unable to recover from the Terra crash before facing the current price drops.
With on-chain transfer volume outpacing market cap, the NVT signal has dropped dramatically. The signal shows another key bearish sentiment after hitting a four-month low of 936,211.
Also, the MVRV ratio just hit a two-year low of 0.70, pointing to another key indication of capitulation.
This post Could 3AC Affect Ethereum To Register Newer Lows This Week?
was published first on https://ambcrypto.com/could-3ac-affect-ethereum-to-register-newer-lows-this-week/