Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, is currently under serious pressure from sellers, causing its price to fall below the $1800 mark.
In the last 24 hours, Ethereum’s price has slipped to $1,728, which has resulted in huge financial losses for multiple wallets containing the cryptocurrency.
Fresh information provided by cryptocurrency data provider Glassnode shows that the number of ETH addresses that suffered losses using the seven-day moving average has reached a two-year high.
According to Glassnode, the number of addresses containing the second-largest cryptocurrency reached a two-year high on May 27, surpassing the figure of 34 million:
The number of losing Ethereum ETH addresses (7-day moving average) just hit a 2-year high of 34,112,307,018,” the company tweeted.
The massive increase in the number of unprofitable ETH addresses is legitimate, given that the cryptocurrency has lost a lot in value lately. It’s worth noting that two weeks ago, Ethereum was exchanging above $2,600 with an uptrend towards $3,000.
However, it all went wrong, and the Terra ecosystem token crash was the main catalyst for the established bear market. Meanwhile, the Terra incident is not the only reason for Ethereum’s decline. After the Terra situation, bitcoin (BTC) began to dominate other digital currencies in the market, which affects ETH as well.
Bitcoin currently has a market capitalization of $548.6 billion, which is 43.9% of the total value of the cryptocurrency market, while Ethereum’s current level of dominance is 17%.
Commenting on bitcoin’s growing dominance over other cryptocurrencies, CryptoQuant senior analyst Julio Moreno noted that “when cryptocurrency markets have a correction, altcoins are inferior to bitcoin because they are perceived as higher-risk coins than bitcoin.