This weekend brought unexpected developments in the cryptocurrency sector, particularly with Ethereum experiencing significant fluctuations, dropping to as low as $1,800. Investors had already grappled with losses earlier in the week, and this additional weekend turmoil only intensified their struggles.
Among the concerned stakeholders is Vitalik Buterin, the co-founder of Ethereum, whose investments have faced pressure from the recent price downturn. With a cost basis hovering around $2,000, the recent slide has raised alarms among ETH holders, leading to a wave of liquidations.
Ethereum’s Cost Basis Under Pressure
Over recent weeks, Ethereum’s performance has been shaky, struggling to maintain crucial support levels, including its 200-day moving average. This latest downward trend has added yet another dimension to the ongoing challenges the cryptocurrency faces while trying to regain favor in the market.
As one of the largest institutional investors in Ethereum, a prominent organization recently saw its assets dip into negative territory after ETH breached its cost basis. They currently hold a substantial amount of ETH, which has seen a drastic decrease from previous highs.
While Ethereum is currently trading slightly above its average cost basis, there remains a palpable concern regarding its future. If the price continues to drop, the company could face significant unrealized losses, potentially shaking investor confidence further.
Historically, this organization has held firm on its assets, showing no intent to liquidate in the face of dips. Vitalik Buterin took to social media to reassure followers, emphasizing a commitment to long-term stability and growth in the ecosystem.
Nonetheless, sustained trading below the average cost basis may invite questions regarding their strategy for accumulating ETH, which could affect public perceptions.
Outlook for Ethereum Price Recovery
According to Emily Collins, a leading analyst at Blockchain Insights, investors should prepare for an extended recovery period. The recent dip below $1,800 does not signal a mere correction but rather a continuation of a bearish trend that has been in place for several months.
Collins pointed out on Twitter:
Current market indicators are ineffective in identifying potential reversals.
As of now, Ethereum’s price hovers around $1,850, reflecting a more than 7% decline within the last 24 hours. Over the past week, data indicates that ETH has fallen approximately 14%, highlighting a worrying trend for the top altcoin.
