Ethereum (ETH), the world’s second-largest cryptocurrency in terms of market capitalization, is currently under severe selling pressure as its price falls below $1,800.
Ethereum has dropped as low as $1,728 in the last 24 hours, resulting in massive losses for many addresses holding the cryptocurrency.
The number of ETH addresses in losses using the seven-day moving average metric has reached a two-year low, according to new data shared by cryptocurrency on-chain data provider Glassnode.
The number of addresses holding the second-largest cryptocurrency in loss peaked at a two-year high of more than 34 million earlier today, according to Glassnode data.
“#Ethereum $ETH Number of Addresses in Loss (7d MA) just reached a 2-year high of 34,112,307.018,” Glassnode noted today on the popular microblogging platform Twitter.
Terra’s Incident Causes ETH to Fall
Given that the cryptocurrency has been on a massive decline recently, the massive increase in the number of ETH addresses in losses is understandable.
It is worth noting that Ethereum has traded above $2,600 in the last two weeks, with the cryptocurrency looking set to break through $3,000 at the time.
However, things did not go as planned following the crash of Terra ecosystem tokens, which is widely regarded as the primary cause of the current bear market.
Since the market crash began, Ethereum has dropped as low as $1,728, a far cry from the coin’s all-time high (ATH) of $4,878 set on November 10, 2021.
At the time of writing, Ethereum is trading at $1,812, a 62.9 percent drop from its all-time high.
Bitcoin’s dominance puts additional strain on ETH
Meanwhile, the Terra incident isn’t the only reason Ethereum’s price has dropped. Since the Terra incident, Bitcoin (BTC) has grown in market dominance over other digital currencies, putting additional pressure on ETH.
With a market cap of $557.2 billion, Bitcoin currently controls 44 percent of the total cryptocurrency market value, while Ethereum controls 17.2 percent.
In a Bloomberg report, Julio Moreno, a senior analyst at CryptoQuant, said of the impact of Bitcoin’s dominance on other cryptocurrencies:
“Typically, when there’s a correction in crypto markets, altcoins underperform Bitcoin, as they are perceived as higher risk coins than Bitcoin.”
According to the India Economic Times, ETH is expected to face increased pressure as a massive $1 billion option expires this week. Investors will be forced to avoid risky investments until things settle down based on the current state of affairs.