Ethereum price is crashing due to the recent OpenSea phishing attack. With that said, it won't be a surprise if many traders are getting worried over ETH and its future markets.
For reference, one of the largest NFT trading platforms was attacked by cybercriminals recently. As reported earlier, some users might have lost about $1.7 million worth of digital assets during the attack.
The incident, unfortunately, took a turn for the worse in the crypto space. Traders who have lost their confidence in blockchain technologies are quickly withdrawing their digital assets, which ended up creating massive drops on cryptocurrency prices.
Ethereum Price Prediction: Dips and Bearish Trades
Sources from Forbes pointed out that large cryptocurrencies like Bitcoin and Ethereum are taking heavy damage from the incident. Rival cryptos like BNB, Solana and Cardano are also affected.
Bitcoin price officially crashed under $40,000. According to CoinDesk, BTC lost over 6.17 percent of its market cap in the previous 24 hours. Ethereum, BNB, Solana and Cardano are down between 6 to 8 percent in their market.
At the time of writing, ETH is trading at $2,517.07 with a 7.29 downward trend in the last 24 hours.
Forbes emphasized the combined crypto market has already wiped $300 billion in these last few days. Be warned that the number might continue to rise because the situation is still progressing.
Ethereum Price Drop: Should You Invest?
Admittedly, this sudden drop is a severe hit on Ethereum for two reasons. First, the NFTs stolen from OpenSea are taken from the Ethereum blockchain technology. Second is the fact that the ETH market has yet to recover from its losses last year.
Taking all of this into consideration, traders should decide on whether they are willing to invest in the volatile cryptocurrency market. On one side, the current trend would be the perfect opportunity for traders to buy coins at a very low price. But on the other hand, it is hard to determine whether ETH can recover from this price crash.
ETH and NFTs
For reference, NFT is a massively growing industry in the digital space.Forbes said that OpenSea was initially valued at 13 billion after its NFT sales reached $13 25 billion last year. However, because of the recent attack, experts might have to reassess the value.
Note that NFTs are blockchain-based collectible tokens that act as a certification or proof of ownership over a file. An NFT can be represented by music or art pieces and sports memorabilia.
The industry initially generated a lot of hype among fans in these last few years, which created the massive sales mentioned above. Unfortunately, the phishing attack and NFT stealing scheme is an effective strategy to scare away a few traders from the industry.
Aside from cybercriminals, traders should also be warned about the U.S. Federal Reserve proposals to hike interest rates on cryptocurrencies. With both these dangerous factors active, it is hard to guarantee that ETH can recover its token value.
