It has been a roller coaster ride for Ethereum and Bitcoin over the last 48 hours with the former dipping to a low of $135, its lowest level in more than a month. Bitcoin also saw a massive decline in prices touching a low of $1800. However, both the cryptocurrencies have recovered well today.
Ethereum, Bitcoin’s closest rival in terms of market cap, dropped by around 20%, to $135, its lowest level in more than a month. Ethereum notched its fourth weekly loss in a row last week amid concern the cryptocurrency faces a period of correction after rallying to record-highs. Prices are down almost 62% since peaking at an all-time high close to the $400-level in mid-June. However, as of this writing Ehtereum is trading at $175.
Other prominent cryptocurrencies such as Litecoin, Ripple and Dash have also suffered drops of 15-to-25% over the past 24 hours.
The cryptocurrency space reached a peak market cap of around $116 billion in June and since then has lost a whopping $42 billion, a 36% correction over the past one month, meeting the technical definition of a bear market.
Meanwhile, Bitcoin fell below the $2,000-level for the first time in several weeks as investors remained wary of initiating large position amid several warnings from analysts that the digital currency has peaked since hitting $3,000 last month.
The cryptocurrency was at $1815.38 on the U.S.-based GDAX exchange operated by Coinbase in early trade North American trade, down about 9%.
Bitcoin prices have declined almost 37% since hitting an all-time high of $3,000 on June 11. Despite recent losses, it is still up nearly 55% since the start of the year.
Market players have pointed to the ongoing debate over the future of Bitcoin’s technical roadmap, as well as uncertainty over how planned upgrades could unfold, as one of the reasons for the recent rapid price decline.