Cryptocurrencies

Ethereum Briefly Drops Below $3000 Again, Why?


Ethereum (ETH), the second-largest digital asset, briefly fell below $3,000 again today, after the coin managed to break above this level over the weekend. The drop follows that of Bitcoin and comes as large holders sell their ETH. At the same time, expectations are growing that an Ethereum ETF (exchange-traded fund) could soon be approved in the United States.

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Price drop and trading volume

Data from CoinMarketCap shows that the price of ETH dropped by over 4% to a low of $2,822. At the time of writing, ETH is trading at $2,914. The trading volume increased by 27.25% to $13.9 billion. The total value of all Ethereum coins combined (market cap) is $350 billion.

Major players are selling

Over the weekend, Ethereum’s price rose above $3,000, peaking at $3,081. However, this level did not hold as large holders sold their coins. According to journalist Colin Wu sold a significant amount of ETH to crypto project Golem, among others. Golem raised 820,000 ETH during a crowdfunding in 2016. Over the past 37 days, the project has transferred around 36,000 ETH (worth $115 million) to various exchanges.

Other major players, so-called ‘whales’, also took advantage of the recent price increase by selling ETH. So two traders sold together worth approximately $41 million worth of Ethereum.

Waiting for ETF approval

The sales by major players are taking place as the market looks forward to the possible approval of an Ethereum ETF in the US. Earlier this year, the SEC already approved several applications from major asset managers. However, the final approval for the launch of such an ETF has not yet been received. However, the regulator and the providers are in discussions about this. Some experts expect that the approval could come around July 15.



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