Why Is Ethereum Plunging Today?

Ethereum (CRYPTO: ETH) traded 6.96% lower at $1,970.96 over 24 hours. The Vitalik Buterin co-founded cryptocurrency was in the red 25.32% in a seven-day trailing period.

What Happened: ETH followed the broader trend into a decline as the overall cryptocurrency market capitalization fell 6.27% to $1.33 trillion over 24 hours.

See Also: How To Buy Ethereum (ETH)

The market capitalization of ETH stood at $229.48 billion at press time, a decline of 6.99% over 24 hours. Trading volumes rose 61.56% to $36.70 billion.

ETH is down 54.8% since it touched an all-time high of $4,362.35 last month.

Why It Matters: The latest cryptocurrency rout has been precipitated by a crackdown in China after the country’s central bank instructed financial institutions to stop providing trading, clearing, and settlement for cryptocurrency transactions.

See Also: Dogecoin Headed To 5 Cents After Losing Crucial Support Level And Even Elon Musk Can’t Save It, Says Bitcoin Bull

Meanwhile, Barry Silbert-led Digital Currency Group, which owns Grayscale Investments announced plans to purchase $50 million worth of shares of Grayscale Ethereum Classic Trust (OTC:ETCG).

ETC is often viewed as a rival to ETH and the DCG move could be fueling the bearish sentiments further.

Photo by Zoltan Tasi on Unsplash