BTC PULSE
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
Play Now
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise
No Result
View All Result
BTC PULSE
No Result
View All Result
Play Now
Home Blockchain

Here’s Why Ethereum (ETH) Dropped to 2018 Highs of $1.3K

by Dalmas Ngetich
Jun 13, 2022 - 12:00 am
in Blockchain
Here's Why Ethereum (ETH) Dropped to 2018 Highs of $1.3K

Ethereum, the second-largest cryptocurrency is currently down by over 15% in the last 24 hours. Ether is currently valued below $1300. The last time the DeFi king traded below $1300 was in January 2021, shortly before it broke its previous ATH. Prior to that, this significant level was its resistance in 2018, before the crypto market changed direction. Several factors have contributed to Ethereum’s recent low. Notably, stETH recently lost its peg with ETH, causing panic amongst investors. 

stETH losing its Peg with ETH is Bad for Investors

Alameda Research and the Celsius network have been directly affected by the peg loss. The Lido protocol supports stETH, which is staked Ether and is meant to maintain a 1:1 value with ETH. However, a severe imbalance in the liquidity pools has led to stETH losing its peg. stETH has been trading 4-5% away from Ether.

Following the de-pegging, Alameda Research closed its stETH position and sold off nearly $50,000 stETH within a few hours. Other retail investors followed the course of Alameda, selling off significant volumes of stETH and ETH in Lido pools.

AlamedaResearch exited their position yesterday and unload nearly 50k stETH over a matter of hours. CelsiusNetwork is quickly running out of liquid funds to pay back their investors who are redeeming positions. By @SmallCapScience https://t.co/3wcUEGksh0

— Wu Blockchain (@WuBlockchain) June 10, 2022

Celsius network is also affected by the market conditions. Celsius has nearly $1.5 billion of investors’ funds as staked ETH. At the moment, the Celsius network is running out of liquid funds to pay investors. They have lost huge sums to hackers and market crashes already and market conditions aren’t getting any better. Celsius lost $70 million worth of ETH in a StakeHound exploit last year. The network also lost $50 million in the BadgerDAO front-end exploit, and more significantly, $500 million worth of investors’ funds were lost in the LUNA debacle about a month ago. 

At the moment, things are getting hotter for the Celsius network, and investors have been trying to redeem their positions. Just before things got worse, Celsius announced that they will be pausing withdrawals for now. The team acknowledged that extreme market conditions have led to the decision and its decision is with the community’s interest at heart. 

Although the prices of digital assets have collectively tumbled, the de-pegging of stETH from ETH has amplified the panic, causing a huge sell-off from stETH and Ether investors. 

Tags: CryptoEthereum
Dalmas Ngetich

Dalmas Ngetich

His primary focus is on technical analysis (crypto is, obviously, *not* crypto without the twirls of price action), the magic of DeFi, and NFTs. He is specifically training his eyes and effort on DeFi—and how the tech is changing investment, opening up opportunities for everyone—and the possibilities of NFTs.

Related Posts

Hong Kong police introduce CryptoTrace blockchain tracking tool at cybersecurity summit

Hong Kong Police Unveil CryptoTrace Tool to Combat Rising Web3 Crime

May 15, 2025

Hong Kong’s police reveal CryptoTrace, a blockchain tool built with HKU to track illicit crypto flows and curb...

Court documents allege NFT founder stole funds from Bitcoin mining venture

NFT Founder Sued for Allegedly Stealing Millions from Bitcoin Mining Venture

May 15, 2025

NFT project founder allegedly stole millions from partners in a Bitcoin mining venture, sparking a fraud lawsuit in...

Nexpace's NXPC token displayed on a digital exchange interface after Binance Alpha listing announcement

Nexon’s Nexpace Token NXPC Secures Binance Alpha Listing Ahead of Web3 Launch

May 14, 2025

NXPC, Nexpace's utility token, lands Binance Alpha listing May 15, gaining support from top exchanges as Nexon expands...

Tether Gold XAUt token listed on Thai crypto exchange Maxbit backed by PTG Energy

Tether Gold Debuts in Thailand with Maxbit Exchange Listing

May 13, 2025

Tether Gold debuts in Thailand on Maxbit, enabling trading of tokenized gold backed by physical reserves under SEC-regulated...

Press Releases

image2

Could XYZVerse Overtake DOGE and SHIB? Analysts Say $0.003333 Could Explode to $10!

March 30, 2025

XYZVerse aims to outpace DOGE and SHIB, with bold $10 price goals, strong community rewards, and rising demand as it...

image1 1

Massive Institutional BTC Buys Could Launch the Next Bull Market: 5 Altcoins to Watch

March 29, 2025

Institutional Bitcoin buys may trigger a market surge. Five altcoins, including $XYZ, stand to gain—early investors could see major ROI...

image1

XRP Faces Strong Resistance While XYZVerse Gains Early Investor Attention With 10 Billion $XYZ Airdrop

March 28, 2025

XRP struggles at resistance, while XYZVerse grabs early investor attention with a 10B token airdrop and rapid growth toward a...

BTC

Popular Memecoin MEW Pledges $10,000 to Pasadena Humane Organization to Aid Animals Affected by California Wildfires

January 20, 2025

MEW memecoin donates $10K to Pasadena Humane for wildfire-affected animals. Join the mission to aid pets and wildlife in crisis...

View All
BTC-Pulse LogoTransparent

© 2024 BTC-PULSE. Disclaimer: The content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice.

News

  • Altcoins
  • Bitcoin
  • Ethereum
  • NFT
  • Regulation
  • WEB 3.0

Info

  • Learn
  • Price Prediction
  • Events
  • Press Releases
  • Sitemap

Company

  • About Us
  • Terms of Service
  • Privacy Policy
  • Contact Us
  • Advertise

©2024 BTC-PULSE – All right Reserved.

No Result
View All Result
  • News
    • Altcoins
    • Blockchain
    • Bitcoin
    • Ethereum
    • NFT
    • Regulation
    • WEB 3.0
  • Price Prediction
  • Learn
  • Events
  • Advertise