It’s been 12-days since the trading price of Ethereum (ETH) has been oscillating between a particular trading range. The report shows that the range referred to here is $1,910 to $2,150. However, as the oscillations continue, it is expected that $495 million worth of funds may get liquidated by the investors.
The liquidation of such a high value will be carried out in the form of the futures contracts’ aggregation from May 13.
Impact of the Market Crisis
The investments for digital assets are also taking huge damage due to the market conditions that are becoming worse day by day. The data shared by the major on-chain analytics firms shows that $141 million worth of investments have been recorded leaving the crypto markets. The outflow of the crypto investments was witnessed for the week that ended on the 20th of May. Among the cryptocurrencies being liquidated, the cryptocurrency on top of the list was none other than Bitcoin (BTC).
US Stock Market Situation and the Russian Regulations
The stock market situation in the United States is still facing a downtrend. On May 24, the Nasdaq Composite recorded a 2.5% drop in the stock index. The tech stocks also faced a huge impact due to Snap’s big loss in earnings, causing the company to face an over 40% stock market plunge. The plunge caused the stock prices of other major companies such as Meta, Microsoft, Apple, and more companies to face the impact as well.
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Then it is the regulatory framework surrounding cryptocurrencies in Russia. On May 20, a law proposal made by the Duma has been made public. The proposal no longer demands the mining centers in Russia to be registered. Furthermore, the proposal no longer provides tax amnesty to the mining centers that it had hinted it would not implement in the past.
According to the Russian Government, giving amnesty to the mining centers would result in the government incurring the costs. This would eventually end up impacting the federal budget.
The Bearish Trend all the Way for Ethereum
A look at the decentralized applications for Ethereum suggests that their demand and usability are constantly going down. The data shows that in the past week alone, the number of active users of decentralized applications of Ethereum has plummeted by 27%.
The futures contracts premium for Ether has reportedly fallen below the April 6 neutral-market threshold of 5%. At present, the actual basis indicator is at 3%, which shows that the leverage buyers have very low conviction. Despite the 2% surge Ether has gained in the past 24-hours by surging to $1,910, the overall sentiments of the investors are extremely low. From the looks of it, due to the lack of conviction, it will be difficult for Ether to hit $2,150.