After a global slowdown in the crypto industry, many coins have started recovering from their record lows this month. Similarly, the second-largest crypto, Ethereum has started gaining ground after the price slump.
Bedrock to the NFT industry, the trajectory of Ethereum affects a sizeable number of altcoins and projects. Moreover, Ethereum with its price generally portrays the state of the altcoin industry due to its variety of use-cases in smart contracts, etcetera.
After a tremendous bull run from end-August to early September, Ethereum started slumping after the first week. Post a major profit-brooking session, Ethereum dropped from ~$3,900 to ~$3,200. However, it regained its position for a week reaching ~$3,500.
But the position didn’t last long. After an uncertain run driving the price up & down a couple of times, Ethereum finally fell below the ~$3,000.
In fact, it reached a new low of $2,720 on 22nd September. However, a short buying spree returned the crypto back to above ~$3,000 levels. That turned out not so well as Ethereum fell back to ~$2,800 the very next day.
The crypto stayed below $3,000 for roughly two days before a buying spree propelled back its price to above $3,000. Moreover, this time, the coin is still running upwards reaching $3,105 as of writing.
Cryptocurrency markets this week performed in response to a looming housing crisis in the Chinese property sector and its ripple effect across global economies. Although there is no direct link between the two of them, the effect of Chinese property giant Evergrande’s debt crunch seems to have spilled over into cryptocurrencies.