Ethereum

Will Ethereum(ETH) Price Trade Backwards to Maintain the stETH Peg!

Written by: Sahana Vibhute

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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Jun 11, 2022

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Highlights

    stETH de-pegged heavily a couple of hours before and continues with the same trend displaying the possibilities of a new LUNA-UST pair in the market

    While the stETH price has to be stabilized, the ETH prices are required to crash a little and trade along the same levels as Lido Staked ETH

stETH, the tokenized form of staked ETH and the native token of Lido de-pegged and dropped hard similar to that of UST. Lido is a staking solution for Ethereum backed by several industry-leading staking providers. In the past couple of days, the stETH price has dropped by more than 11% trading at $1504 against the ETH price which is $1575 at the press time. 

A Dejavu moment is been experienced within the crypto space as the stETH price de-pegged while the ETH price is slumping hard along with the entire crypto space being dominated by the bears. Therefore, if stETH prices are to be equal to that of ETH, then the ETH prices are required to plunge hard to the stETH level.

However, while the market sentiments have been bearish and the upcoming weekends may also turn bearish, the possibility of stETH losing its peg massively emerges. Therefore, ETH prices are required to match these levels at the earliest and save another token following the path of UST & LUNA. 

How Low Can Ethereum(ETH) Price Tank Down in this Bearish Cycle?

As the Bitcoin prices plunged hard by nearly 5% in the past couple of hours, most of the altcoins also experience a similar price action. While no major deviation was witnessed since the beginning of the week, the ETH price, however, has been cracking over time. Currently, Ethereum is witnessing very low levels of new addresses along with depleted transaction volumes. 

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Additionally, the market participant’s activity has also depleted of let that may drive the price towards the lower support soon. As Coinpedia earlier predicted that ETH prices could drop below the lower support and test the crucial support at $1500 soon. Currently, Ethereum prices are dominated by the bears and hence the upcoming weekend could drain another 6% to 8% in the weekend.

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Sahana Vibhute

A passionate cryptocurrency and blockchain author qualified to cover every event in the crypto space. Researching minute occurrences and bringing new insights lie within the prime focus of my task.

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