In recent weeks, Ethereum (ETH), one of the leading cryptocurrencies in the market, has experienced a substantial decline in value. From its mid-August peak at $1,850, Ethereum’s price has been on a consistent downward trajectory.
Today, on September 12, the digital asset reached its lowest point in half a year, raising concerns and questions about the factors driving this extended slump.
Specifically, ETH tumbled to as low as $1,540 at one point in the past 24 hours, marking the first time the cryptocurrency crashed to this price since March 12.
According to the behavior analytics platform Santiment, Ethereum’s latest dip “coincided with large quantities of stagnant ETH moving away from old wallets.”
“A continued dip in mean [coin] age while prices drop is a capitulation sign, which foreshadows reversals.”
– Santiment concluded.
Why is ETH down today?
Per Santiment, ‘mean coin age’ refers to the average age of all coins or tokens on a blockchain. Meanwhile, ‘mean dollar invested age’ is a metric that gauges the average age of all coins/tokens on a blockchain weighted by the purchase price.
ETH being offloaded by older wallets underscores the drop in confidence in the world’s second-largest crypto asset, which continues to underperform Bitcoin (BTC) and several other major altcoins in 2023.
Ethereum price analysis
At press time, ETH was changing hands at $1,580, down 1.5%, marking a slight recovery from the 6-month low it hit earlier in the day.
Over the past week, the crypto token dropped around 2.6% and nearly 15% on the month, losing more than $30 billion in market cap during that period.
Last week, Finbold analyzed Ethereum’s price forecasts offered by PricePredictions’ machine learning algorithms, seeking further insights into ETH’s potential price action in September.
According to the platform’s estimates, ETH is expected to end this month at around $1,611, which would represent a minor recovery of about 2% from its current level.
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