{"id":528249,"date":"2022-12-16T21:30:00","date_gmt":"2022-12-16T18:30:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/why-is-ethereum-eth-price-down-today\/"},"modified":"2022-12-16T21:30:00","modified_gmt":"2022-12-16T18:30:00","slug":"why-is-ethereum-eth-price-down-today","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/","title":{"rendered":"# Why is Ethereum (ETH) price down today?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_84 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a2e8b5200797\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a2e8b5200797\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/#%E2%80%9D_Why_is_Ethereum_ETH_price_down_today_%E2%80%9C\" >&#8221; Why is Ethereum (ETH) price down today?  &#8220;<\/a><ul class='ez-toc-list-level-2' ><li class='ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/#Ethereum_turns_inflationary_as_total_revenue_falls\" >Ethereum turns inflationary as total revenue falls<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/#A_decline_in_DeFi_use_aligns_with_Ethers_price_action\" >A decline in DeFi use aligns with Ether\u2019s price action<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/#Regulatory_pressure_continues_to_weigh_on_investor_confidence\" >Regulatory pressure continues to weigh on investor confidence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/buradabiliyorum.com\/en\/why-is-ethereum-eth-price-down-today\/#Investor_expectations_for_2023\" >Investor expectations for 2023<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Why_is_Ethereum_ETH_price_down_today_%E2%80%9C\"><\/span>&#8221; Why is Ethereum (ETH) price down today?  &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<div class=\"post-content\" data-v-30a6cf80>Ether (ETH) price is down on Dec. 16 and the pre-FOMC rally to $1,350 was obliterated after Federal Reserve chair Jerome Powell issued hawkish statements following a 0.50% hike in interest rates.<\/p>\n<p>The Ether sell-off follows a market-wide decline that has sent Ethereum network fees plummeting by 39.90% in the past 30-days. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/b60b15c6-afb7-41fe-b56d-287767c70bba.png\"><figcaption style=\"text-align: center;\"><em>Daily Ethereum network fees and daily active users. Source: TokenTerminal<\/em><\/figcaption><\/figure>\n<p>The total value locked in Ethereum-based smart contracts also decreased by decentralized finance by 4.49% in 24-hours. <\/p>\n<p>Following the FTX exchange scandal, regulators are attempting to fast-track new regulations on the cryptocurrency sector. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/4c45439e-a505-4ae1-8d32-c9e27de52f32.png\"><figcaption style=\"text-align: center;\"><em>Total USD value locked on the Ethereum network. Source: DefiLlama<\/em><\/figcaption><\/figure>\n<p>While some analysts believe Ethereum still possesses multiple bullish catalysts that warrant investing in the asset, on-chain data paints a grim picture of its short-term price prospects.<\/p>\n<p>Here are three reasons why Ether price is down today.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Ethereum_turns_inflationary_as_total_revenue_falls\"><\/span>Ethereum turns inflationary as total revenue falls <span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Ether price fell as daily fees on the Ethereum network plummeted to $2.9 million, down from pre-FTX levels of $12.8 million on June 13. In addition to the decreasing fees, the network registered lower daily active users (DAUs) from a July 26 peak at 961,196 users to only 367,000 DAUs on Dec. 16. <\/p>\n<p>Post-Ethereum merge tokenomics were designed to help Ether become deflationary. However, with gas fees declining and reduced DAUs, Ethereum has turned inflationary by 0.073% in the past 30-days and added over 7,100 Ether. According to ultra sound money, since the merge, Ethereum\u2019s network is inflationary by over 1,192 Ether.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/1e5b20dc-5693-44ce-b0dc-1085780e86a3.png\"><figcaption style=\"text-align: center;\"><em>Ethereum supply. Source: ultra sound money<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"A_decline_in_DeFi_use_aligns_with_Ethers_price_action\"><\/span>A decline in DeFi use aligns with Ether\u2019s price action<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The total value locked metric is a common way to examine the health and sentiment of a Proof of stake (PoS) blockchain like Ethereum. Ethereum\u2019s TVL reached a yearly high at $83.9 billion on March 31, but since that point, it has shed nearly $60 billion. As of Dec. 15, the network\u2019s TVL stands at $23.46 billion. <\/p>\n<p>The top 10 Ethereum protocols by market cap faced headwinds, with all seeing a drop in TVL and fees over a 7-day period. Notably, MakerDao and Uniswap (UNI) saw 5.82% and 3.49% respective declines in TVL. <\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/fb46aacc-9a0f-44aa-8bd7-29c922b4eb06.png\"><figcaption style=\"text-align: center;\"><em>Ethereum network DeFi protocols sorted by market cap. Source: DeFiLlama<\/em><\/figcaption><\/figure>\n<h2><span class=\"ez-toc-section\" id=\"Regulatory_pressure_continues_to_weigh_on_investor_confidence\"><\/span>Regulatory pressure continues to weigh on investor confidence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>On August 9, the Invest in America Act (infrastructure bill) passed Congress and was signed by President Joe <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.whitehouse.gov\/briefing-room\/statements-releases\/2021\/08\/02\/updated-fact-sheet-bipartisan-infrastructure-investment-and-jobs-act\/\">Biden<\/a>. Members of the blockchain community blasted the bill for what they viewed to be harmful language. The legislation is set to take effect in January 2024. <\/p>\n<p>If Ether is deemed a security in the United States, centralized exchanges (CEX) may be forced to delist the altcoin for US-based customers. The security classification could also negatively impact altcoins, D<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">App<\/a>s and decentralized exchanges (DEX) built on Ethereum. The Securities and Exchange Commission (SEC) has yet to decide if Ether passes the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.sec.gov\/news\/speech\/peirce-how-we-howey-050919\">Howey test<\/a>. <\/p>\n<p>The announcement by the Commodity Futures Trading Commission (CFTC) which declared Ether a commodity also does not seem to be relieving any investor fears. <\/p>\n<h2><span class=\"ez-toc-section\" id=\"Investor_expectations_for_2023\"><\/span>Investor expectations for 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the looming Shanghai hard fork, which allows users to unstake Ether in March 2023, the Ether price is likely to remain under pressure. <\/p>\n<p>While investors\u2019 appetite for high-risk assets and their interest in DeFi could continue to diminish, factors like clarity on regulators&#8217; stance on cryptocurrencies and the eventual increase in Ethereum network-based protocols may prove to be a long-term catalyst for price growth. <\/p>\n<p><template data-name=\"subscription_form\" data-type=\"markets_outlook\"><\/template><\/p>\n<p class=\"post-content__disclaimer\">The views, thoughts and opinions expressed here are the authors\u2019 alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.\n<\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/why-is-ethereum-eth-price-down-today\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Why is Ethereum (ETH) price down today? &#8220; Ether (ETH) price is down on Dec. 16 and the pre-FOMC rally to $1,350 was obliterated after Federal Reserve chair Jerome Powell issued hawkish statements following a 0.50% hike in interest rates. The Ether sell-off follows a market-wide decline that has sent Ethereum network fees plummeting&#8230;<\/p>\n","protected":false},"author":1,"featured_media":528250,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/cdn-cgi\/image\/format=auto,onerror=redirect,quality=90,width=1200\/https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/765169f9-a0f0-417e-80a7-e46c62d58f26.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74867,74937,74863,74860,74877,82402,74891,74938,73785,71407],"class_list":["post-528249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-altcoin","tag-bitcoin-price","tag-cryptocurrencies","tag-cryptocurrency-exchange","tag-decentralized-exchange","tag-ether-price","tag-ethereum","tag-ethereum-price","tag-markets","tag-trading"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/528249","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=528249"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/528249\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/528250"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=528249"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=528249"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=528249"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}