Ethereum price today: Is Ethereum dropping?

Radio hosts Chris Evans and Vassos Alexander talk about crypto currency

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Cryptocurrencies are known for their volatility and the last few days have certainly been turbulent for the market. China’s latest cryptocurrency crackdown caused crypto prices to plummet over the weekend, but there have been some signs of recovery on Wednesday, according to experts.

Is Ethereum dropping?

Like all cryptocurrencies, Ethereum is incredibly volatile and prices can rise and fall in an instant.

But according to CoinDesk data, Ethereum’s price has increased rather than dropped over the last 24 hours.

As of the evening of June 23, Ethereum was up 2.62 percent over 24 hours, with the crypto priced at $1,937.45 (£1,387.60).

Ethereum also had a market cap of $225.52 billion (£161.52 billion).

Why did Ethereum drop earlier this week?

Bitcoin fell below $30,000 for the first time in nearly five months earlier this week.

Bitcoin’s drop was partly attributed to actions in China, where the country cracked down further on bitcoin mining.

Power was severed to bitcoin mines in the Sichuan province of China over the weekend, which is one of China’s largest producers of the cryptocurrency.

China’s central bank said on Monday it had summoned some banks and payment institutions recently, urging them to crack down harder on cryptocurrency trading.

As well as the bitcoin market, the situation also impacted the value of other cryptocurrencies like Ethereum.

The events also prompted a drop in value for smaller cryptocurrencies such as Dogecoin.

Explaining the shift in price since the weekend, Alexandra Clark, Sales Trader at the UK based digital asset broker GlobalBlock, said: “Bitcoin and Ethereum have both recovered after dropping below crucial support levels of $30,000 and $2,000 yesterday.

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“It is thought that Bitcoin’s decline was in part caused by the seismic mining shift in China.”

The recent plunge in price of cryptocurrencies across the board has highlighted the volatility of these markets.

In recent months, regulators have reiterated warnings about the risks of investing in cryptocurrency.

Cryptocurrencies have been criticised for their lack of regulation and people should be aware of the risks involved.

Jeremy Cheah, Professor of Crypto-Finance and Digital Investment at Nottingham Business School, told “There are lots of risks involved in investing in cryptocurrency.

“For example a platform closing down, lack of regulations and enforcement to protect investors’ rights, high price volatility in cryptos driven by sentiment trading (irrational exuberance), threat of government shutting down mining activities, for example in China recently, lack of fundamental or intrinsic value – that is, not backed by any collateral or asset, bugs in codes, etc.

“People should always do their research and be aware of the risks in crypto investment before they invest.”

The information in this article does not equate to financial advice.

Anyone considering investing in cryptocurrency should understand the risks involved.

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