Could 3AC affect Ethereum to register newer lows this week

The global crypto market cap has dropped by $369 billion in the past week. Ethereum [ETH], as it stands, took the biggest hit during the past week among the top 10 cryptocurrencies. But the question is- What conspired against ETH as it plunged to new lows on 15 June?

welcome to carnage

For most cryptocurrencies, the bear market signaled a time to adopt stopgap measures and “wait and watch.” However, some major cryptos have been hit hard in these bearish conditions. Amid the market selloff, ETH is the hardest hit among the top 10 cryptocurrencies over the past week.

The last two weeks have especially been very hard for Ethereum. The token experienced a massive liquidation volume across the market. The rumors of insolvency pertaining to Three Arrows Capital, as well as the block reorganization in the Beacon Chain have had an impact on the altcoin.

However, a prominent crypto analyst who goes by the name “Onchain Wizard” on Twitter has claimed another huge liquidation of 3AC.

Furthermore, ETH might also fall further after the FOMC meeting as the Federal Reserve is likely to raise the interest rate by 75 bps.

Ring the buttocks

Ethereum is currently trading at its lowest level in 17 months. It is down nearly 80% from its all-time high of $4,891 the token stood at in November 2021. But metrics point to further declines for the market’s largest altcoin.

As per the latest Glassnode updates, Ethereum’s data is suggesting that investors are experiencing massive losses.

In fact, the number of lost addresses reached an all-time high of 38,011,694. This shows how much ETH has fallen during the current crash. Obviously, many investors couldn’t recover from the Terra crash before they were faced with the current price declines.

With the on-chain transfer volume outpacing market cap growth, the NVT signal has dropped dramatically. The signal is showing another major bearish sentiment after touching a four-month low of 936.211.