Ethereum’s (ETH) price dropped sharply in the past 24 hours. There are concerns that a planned shift to a proof of stake model might be delayed. Ethereum’s latest low today follows a period of significant growth for the asset in July which saw it rise about 95% during a short span led by investors excited about its shift to proof of stake. According to data from coinmarketcap.com, the second-largest cryptocurrency has been crashing over 13% last week, and Ethereum trading has seen a 59% decline. While Bianace Coin (BNB) $41 billion market cap makes it the fifth-biggest digital currency, its performance has not been nearly as impressive as Bitcoin or Ethereum.
The U.S. stock market tumbled on June 10 after the Consumer Price Index (CPI) report showed inflation surging 8.6% from a year ago, the highest increase since 1981. The latest figures from Bloomberg show that investors are pricing in the key interest rate of 3% by the end of the year, but inflation has not peaked yet.
ETH Price Plunges Below $1,500
May was a difficult month for the digital asset space, with Ethereum falling from its long-held second spot on the market to about $176 billion in market capitalization. More broadly, digital assets are facing significant headwinds as inflation drives households to be more cautious with their spending management.
Other cryptocurrencies also took a heavy blow, including Solana (losing 14.50%), Avalanche (falling 19%), and Cardano (losing 15%), which has retreated by more than 10% in the past 24 hours. The price of ETH has significantly plummeted to $1431 (losing 13%) as the market recovers from a downward trend. Multiple retests indicate that this resistance point is now significant.