As bears circle crypto and traditional markets, Ethereum has faced the brunt of it.
Ethereum is currently trading hands at $1,770, down roughly 3.4% over the past 24 hours, according to CoinMarketCap. The bearish trend is the latest in what has been a rather red week for the second-largest cryptocurrency by market capitalization.
Over the past seven days, Ethereum shed more than 16% of its value, tumbling from $2,077 on Monday to as low as $1,731 in the early hours on Friday. It has since recovered some, however, and currently stands at around $1,770, down 3.5% on the day.
This drastic price shift also led to over $157.26 million in Ethereum liquidations, according to data pulled from coinglass. More than 75% of these liquidations were long positions from bullish crypto traders.
The impetus for the asset’s recent price action is multi-pronged.
Perhaps most notable, however, was a recent hang-up related to Ethereum’s incoming merge event slated for August.
The merge will see the current proof-of-work (PoW) version of Ethereum merge with its proof-of-stake (PoS) counterpart. This counterpart is technically called the Beacon Chain and has been in operation since December 2020.
On Wednesday, however, the Beacon Chain, a sort of ghost version of Ethereum running in parallel to the current Ethereum, experienced a block reorganization event. Such an event means that for a brief moment the Beacon Chain had been forked, and blocks of transactions were being processed on yet another parallel version of the Beacon Chain.
The Ethereum beacon chain experienced a 7-block deep reorg ~2.5h ago. This shows that the current attestation strategy of nodes should be reconsidered to hopefully result in a more stable chain! (proposals already exist) pic.twitter.com/BkQrKuUlw1