Ethereum Price To Plunge Further, Here Is Why

Author: Sohrab Khawas

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    Ethereum price fell in relation to the selling of 65,000 Ethereum on Uniswap. The huge crunch had a severe impact on the Ethereum price. This led to a gloomy feeling among investors.

    It’s the first time since 2020, Ethereum mining became unprofitable for customers linked to the regular electric system. Ethereum prices fell to $1,188 as energy prices surged.

    The price is more than the Ethereum return for the same GPU because of rising power costs in New England, Connecticut, Maine, Massachusetts, New Hampshire, and Rhode Island. As a result, miners spending more above $0.245 per kWh are now losing money.

    Mining Ethereum with GPUs has become unprofitable. At this stage, purchasing Ethereum rather than mining or spending money on energy is more cost-effective.

    The CEO of Galaxy Investment Partners, Michael Edward Novogratz, predicts the Ethereum price might fall to $1,000 and remain there in the present decline. As Novogratz stated at a Morgan Stanley meeting, Ethereum is nearer to “the bottom” than US stocks.

    Lido Staking Dominance, A Threat To Ethereum Price

    Staking Ethereum for protocol  Lido has overtaken Ethereum staking, placing the decentralized blockchain at risk of centralized assault. This might happen if the network merges and becomes a proof-of-stake network.

    Danny Ryan, an Ethereum Foundation researcher, presented this scenario in a post titled the hazards of LSD (Lido staking dominance). Ryan advises all Ethereum stakeholders to create a boundary and cautions investors to minimize their exposure to the protocol due to the potential of centralized assaults.

    According to Dune Analytics statistics, Lido tops ETH2 liquid staking with a 90.8% balance and more than 4 million ETH stake. The Lido team claims that it employs 21 validators, and that centralized institutions do not deliver this level of openness.

    Ethereum Price Drop To $950 On Uniswap

    On Monday, June 13, the price of Ethereum on Uniswap fell to $950 in comparison to other cryptocurrency exchanges across multiple trading pairings. A significant wallet investor unloaded 65,000 Ethereum in exchange for stablecoins, causing a $100 million liquidity pressure in the cryptocurrency.

    The occurrence brought Ethereum’s current price down by 20% compared to other cryptocurrency exchanges. The whale auctioned huge sums of Ethereum due to a liquidation risk on an over-leveraged investment.

    • 80 million DAI were borrowed using ETH. 
    • The whale contributed 96,700 ETH to the loan via Maker DAO MAKER/USD. 
    • A 130,000 ETH position was opened.

    Because this was an overly leveraged position, the whale decreased their risk by selling over 65,000 Ethereum tokens on Uniswap and lowering the liquidation price.

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