The Ethereum (CRYPTO: ETH) price almost halved in value in June.
Depending on your time zone, Ethereum began the month trading for US$1,989. By the evening of 30 June, it was trading for US$1,025, down 47%.
The world's number two token by market cap never regained the level it opened June with, hitting as low as US$896 mid-month, according to data from CoinMarketCap.
The Ethereum price has rebounded slightly in July, currently trading for US$1,118. Still, that leaves the crypto down 77% from its 16 November record high.
Image source: Getty Images
Why did the Ethereum price collapse in June?
To be fair, it was far from just Ethereum that sold off heavily last month.
Bitcoin (CRYPTO: BTC) fell 41% and most every single top crypto – save the stablecoins – was deep in the red as well.
There were a few hefty tailwinds at work here, the strongest being fast rising prices and aggressive interest rate increases from lead central banks. This saw risk assets, like cryptos high growth tech shares, all come under pressure last month, with the NASDAQ closing down 9% and the S&P/ASX All Technology Index (ASX: XTX) losing 10%.
What else pressured prices?
While Ethereum's 8 June proof-of-work switchover to a proof-of-stake protocol test went without a major hitch, this success was overshadowed by wider concerns about the stability in the crypto markets.
Only one month after markets were roiled by the meltdown of Terra's USD stable coin and its supporting token Luna, crypto lender Celsius (CRYPTO: CEL), which promised investors yields of up to 17%, halted withdrawals as investors speculated it might not be able to meet those lofty obligations.
The Ethereum price tumbled on the news.
Commenting on Celsius' woes at the time, Vijay Ayyar, vice president of corporate development Luno, said, "The Celsius news added fuel to the fire, adding to the uncertainty in the market. There is a lot of pressure on prices as we go into the week of Fed decision coupled with concerns on the protocols offering high-yield products."
