Ethereum Price Tumbling Not Just Because of Russia-Ukraine Conflict
Ethereum Price is tumbling but so are the prices of most of the cryptocurrencies. The reason behind the retreating ETH price is attributed to the recent Russia-Ukraine conflict. However, is the current event only the reason behind Ethereum losing its crypto market space to other cryptos?
Ethereum hits its all-time price of $4,891.70 in November 2021 and since then it has never been able to breach $4000. ETH is down by over 40% since then. The Russia-Ukraine conflict took place in the 2nd half of February 2022. Therefore, several factors have been contributing to ETH’s price decline.
Shifting of Ethereum Whales
Since December 2021 there have been several instances when Ethereum Whales have shifted their coins to unknown wallets that have purchased other coins. A few weeks back news of Ethereum whale purchasing Shiba Inu coin made rounds. After that, the price of Shiba Inu skyrocketed as the whale bought 63 billion Shiba Inu coins.
High Gas Fee
In the crypto world, the gas fee does not refer to some liquid fuel but to the reward given to the crypto miners for mining and executing a transaction. Recently, the ETH team announced a reduction in the gas fee. However, despite announcing the reduction, the ETH Gas Fee is still high. The team Bitgert announced the launch of the zero gas fee Bitgert BRC20 blockchain. Therefore, more developers will be choosing Bitgert over Ethereum for building projects.
Russia-Ukraine Conflict and US Regulations
The third reason for the Ethereum price tumbling is the ongoing Russian-Ukraine conflict as well as the regulation of the US government. The US government had announced that they will be regulating cryptocurrencies that have directly hit the crypto market and they led to the tumbling of Crypto price along with Ethereum Price.
Ethereum Price Performance in 2022
In 2022 ETH is down by over 20% and in the last 5 days, ETH has gained around 5% which is though not enough to push the price over $3000. In the last 1 month, ETH Price has risen just 1.18%. At the time of writing this article, ETH is trading below $2800.