• Silvergate’s sudden outflow of customers has caused cryptocurrency prices to decline.
• Ethereum is 67% down from its all-time highs and may drop to a few hundred dollars.
• Analysts are expecting that Ethereum may experience a 90%-94% fall from its all-time highs.
Silvergate Outflow Causes Price Decline
A sudden outflow of customers from cryptocurrency bank Silvergate has caused key crypto prices to decline over the weekend. According to data analytics website Coinglass, liquidations were recorded as a result of the price decline, with long positions in the cryptocurrency futures market worth more than $210 million closed on 2nd March – the highest since last month.
Ethereum May Drop to a Few Hundred Dollars
YouTube channel DataDash host Nicholas Merten said that after an update, Ethereum (ETH) could plunge over 90% from its record high, which would bring it down to only a few hundred dollars if past bear markets are any indication. He added that Ethereum’s price looks weak as it has not been able to break above the $1,600-$1,800 mark for several months now, and if it experiences something similar to prior bear markets such as a 92%-94% fall, one may see ETH drop even lower than before.
Cryptocurrency Prices At All-Time Highs
The current gap between ETH’s all-time high and where it currently stands is significant at 82%, going from $870 all the way down to roughly $500 – and if Ethereum experiences similar conditions as other bear markets in terms of percentage drops then we could be looking at prices in the region of only a few hundred dollars per coin soon.
Analysis On Bear Markets
According to analysts studying bear markets in cryptocurrencies, their findings suggest that Ethereum still has quite some way to go before reaching bottom again – currently being 67% below its all-time high according to Merten’s analysis. The analyst added that this could provide once-in-a-lifetime opportunities for investors who have been waiting for great entry points into the market while also being aware of potential risks involved with such investments at current levels.
It’s too early yet to know whether or not Ethereum will reach three digits soon; however, given what analysts have said about bear markets so far there is potential for this kind of movement depending on how events unfold in the coming weeks and months ahead. Investors should keep their eyes peeled for further developments but remain wary when considering taking part in risky investments during these uncertain times.