Ethereum may be the second-biggest cryptocurrency in the world by market capitalization, but it has been on a losing streak for quite some time, and there is a genuine fear that the token might eventually lose its preeminence in the crypto sphere.

Sell-Off in the Broader Market

The current slump in the crypto market seems to have hit Ethereum particularly hard, and as of Wednesday, the token plunged down to record lows. The price of the token dived to its lowest levels since the month of May, and it goes without saying that the Ethereum token is suffering quite badly in the middle of this downturn in the crypto space.

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In Thursday’s session, Ethereum dropped by as much as 11% at $169 after hitting a low of $164, but at the same time, it is necessary to keep in mind that there have been market-wide declines across the board. Yesterday, Bitcoin (BTC) experienced a slump of 7% to below $9,500, while Litecoin (LTC) went down by as much as 11% at $64.

Some analysts have stated that Tether may have had a role to play in the whole thing that has come to pass with Ethereum. The Ethereum blockchain network has also been totally bogged down for a long time due to the high frequency of transaction that has been brought about by Tether.

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However, according to reports, in addition to the smart contracts from Tether, another set of smart contracts from More Gold Token also raised doubts among many in the community. It is believed that these two factors resulted in the overloading of the Ethereum network and has had an effect on the price.

Ethereum has lost over 54% over the past couple of months from its June peak price of $362. Nevertheless, ETH is still up about 10% year-to-date. Considering the increased selling pressure over the past few sessions, it would be interesting to see traders react in Septemeber.

Featured image: DepositPhotos © yuliang11

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