The Ethereum (ETH) price is being crushed again

Although it is higher than its weekend low of US$779, it hasn’t been a great start to the week for the Ethereum (ETH) price.

The world’s second largest cryptocurrency has lost 13% of its value over the last 24 hours and is currently fetching US$831 according to Coin Market Cap.

This latest decline has reduced its market capitalisation to just under US$81 billion and means it has shed almost US$58 billion, or 41.6%, since peaking at US$138.8 billion in mid-January.

To put that in perspective, US$58 billion (A$74 billion) is almost the equivalent of the combined value of ASX heavyweights Telstra Corporation Ltd (ASX: TLS) and Woolworths Group Ltd (ASX: WOW).

What has happened?

Ethereum’s decline appears to be just a continuation of the mass sell-off of cryptocurrencies due largely to government crackdowns.

It isn’t the only crypto facing sharp declines today. Bitcoin (BTC), Ripple (XRP), Bitcoin Cash (BCH), and Cardano (ADA) have all made double digit declines as trader sentiment grows more and more negative.

The Cardano price has arguably been the worst performer of the majors, falling a remarkable 22% in the last 24 hours to 35.6 U.S. cents. Cardano has now dropped 72% since hitting a high of US$1.26 at the start of January.

Should you buy the Ethereum dip?

While Ethereum and Ripple are technologically vastly superior to bitcoin and arguably more deserving than it to be the number one crypto, they remain close to impossible to value. In light of this, I think it is hard to say whether this latest decline has left Ethereum undervalued of still overvalued.

As a result, I think the safest and smartest option is to stay clear of the cryptocurrencies right now and focus on some of the exciting shares that the local share market has to offer.

These potential market-beating shares, for example, could be far better options that Ethereum.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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