They have been difficult days for the crypto market. And it is that, after several weeks on the rise, with minor corrections in the prices of the main cryptocurrencies, this Sunday the price of Bitcoin collapsed. Taking with them the other cryptocurrencies, who also saw hundreds of dollars in price losses in a matter of hours. Although many are confident that the market will recover soon, currencies like Ethereum could fall as low as $ 500 before recovering.
Sunday’s crash took virtually everyone in the crypto world by surprise. Since, the supply and demand levels of the last few months, seemed to justify the belief that the last big rally in the price of Bitcoin would last for several more weeks. However, within hours this Sunday saw the collapse in the price of Bitcoin.
Thus, from the $ 41,152 per Bitcoin in which the cryptoactive was traded, it fell to $ 30,525 per BTC, more than $ 10,000 in losses in less than a day. And although since then the market has partially recovered, Bitcoin is currently trading at around $ 34,775. Even the cryptocurrency does not appear to be strong enough to return to its pre-crash levels.
This, of course, has affected the other cryptocurrencies on the market. Which, with very few exceptions, have experienced a collapse equal to or greater than that of Bitcoin. Including the second cryptocurrency in the world by market capitalization, Ethereum, which stopped its advance at 1,334 dollars per ETH, temporarily falling to 925, currently trading at 1,090 dollars.
An Ethereum at $ 500?
Now, although the timid recovery in the price of Ethereum seems to be a positive sign in the short term. The truth is that everything will depend on what happens in the Bitcoin market. Which, due to its size compared to other cryptocurrencies, has a decisive influence on its price.
Therefore, if the price of Bitcoin manages to stay above $ 30,000, as it seems it will eventually, this could be enough for Ethereum to also stay above $ 1,000 and continue its rise. However, if Bitcoin fails to support its price and falls below this key support, then we could see an Ethereum at $ 500 before it grows again.
This could happen even despite the momentum that Ethereum itself got, thanks to the launch in early December of Ethereum 2.0, the new version of the cryptocurrency. Well, the great bullish rally in Bitcoin has ended up overshadowing these trends. What determines that we should pay attention to the situation in the Bitcoin market, to know what will happen in ETH.