According to CoinMarketCap data, the crypto market sell-off escalated early Thursday, with Ethereum (ETH) and other alternative cryptocurrencies (altcoins) taking more damage than Bitcoin (BTC). At press time, Ethereum (ETH) was trading at $1,840, a loss of 6.54% over the previous 24 hours.
On Wednesday, Ethereum's Beacon Chain, which will introduce a proof-of-stake consensus mechanism to Ethereum, underwent a seven-block reorganization, or reorg, sparking concerns over the forthcoming Merge upgrade. A reorg occurs when a block is deleted from the blockchain to make room for a longer chain. It might happen as a result of a malicious attack, a flaw or an unintentional block duplication.
An incoming bounce?
According to Santiment, an on-chain analytics platform, Ethereum's average fees are at extremely low levels, with traders currently paying roughly $2.54 per transaction. "This is the lowest ETH cost level since July. Historically, ETH prices rise after average transactions dip below $5." Santiment wrote.
Gas prices fell as the price of ETH dropped when the market sank due to inflation fears and system risks within the broader cryptocurrency market.
Ethereum (ETH) fell below the MA 50 on its weekly chart, marking the eighth consecutive week of losses. The bears, on the other hand, have not given up and are attempting to push the price back to $1,700.
In the case of Ethereum, the latest sell-off has pushed the price closer to the MA 200 at $1,179 on the weekly chart, which could serve as the lower support. According to market observers, a rebound could occur around here as major long-term buyers emerge.
The Cryptocurrency Fear & Greed Index has dropped to 12, which indicates "extreme fear" on the crypto market. Buyers who have been waiting for extreme oversold conditions to buy and keep cryptocurrency may be attracted by the current extreme fear.