The crypto market, with a promising start to 2024, exceeded $2.38 trillion in market cap. Many coins made new all-time highs, and the market showed signs of stability after FTX fallout. Despite key events approaching near, the crypto sector is once again entering a correction phase, with prices dropping mainly due to financial regulations around the globe.
The decline is further fueled by the downward trend of legacy projects like Bitcoin and Ethereum. Despite new developments in Ethereum’s ecosystem, ETH’s price has also been affected by the regulations, which took a significant downturn last week, retracing to $3500.
Ethereum declines 15% within a week
Ethereum (ETH) showed a remarkable upward trajectory above $4000 in late February. With the Dencun Upgrade and ETF approval hype, its price was expected to continue the parabolic momentum. However, when Dencun Upgrade failed to influence the token price, massive sell-offs were observed, with investors promptly pulling out profits.
ETH price dropped to the $3200 level, with a 20% decline since last week before witnessing a minor recovery. Moreover, the interest rate hikes announced by major financial institutions and banks, especially by the US Federal Reserve, have impacted the price trajectory of the whole crypto market. The current financial landscape indicates the possibility of further ETH price decline in the upcoming days.
Impact of ETH price drop on the crypto market
Ethereum’s strong market dominance has a significant impact on the trajectory of the altcoin market. As Ethereum’s value declines, other cryptocurrencies are also observed to follow a similar trend, resulting in decreased prices and a shift in investor sentiment toward alternative assets.
The Ethereum layer 2 projects, notably Polygon, Immutable, Arbitrum, and Dymension, have witnessed weekly drops exceeding 20%, primarily due to the ETH price drop. Moreover, Legacy projects including Bitcoin, Ripple, and Avalanche have witnessed a significant price depreciation due to increased market volatility and high selling pressures.
Over the past seven days, the total cryptocurrency market capitalization has depreciated, falling from $2.89 trillion to $2.42 trillion. Investors demonstrate a preference for projects like Algotech, which offers deflationary tokenomics and reduced susceptibility to Ethereum’s volatility, promising significant returns on investments.
Algotech emerges as a top choice with a 1200% potential
Algotech (ALGT) is rapidly becoming a formidable force in the cryptocurrency market. The algorithmic platform is on track for a potential 1200% surge post-launch, presenting an unparalleled investment opportunity. The project aims to revolutionize the trading sector with the use of Decentralized intelligence and automation strategies.
The project came out on top with its record-breaking ongoing presale, swiftly climbing to over $2.4 million in stage 1. With over 60 Million ALGT tokens sold within two weeks, the hype reflects the strong demand and confidence investors have in the project. This ALGT token is backed by the ERC-20 standard and robust community support.
With Algotech outshining notable cryptocurrencies, its price is projected to hit $1 as it hits major exchanges. With an incredible leap anticipated above its current price of $0.06, investors are now considering Algotech as the next big thing in the digital asset sector.
Learn more:
Visit Algotech Presale
Join The Algotech Community
Source: https://www.cryptopolitan.com/bearish-momentum-takes-over-the-market-as-ethereum-price-retraces-to-3500-algotech-emerges-as-top-choice-with-1200-potential/