A redistribution of responsibilities and authorities is observed in the cryptocurrency market recently. In the second quarter of 2021, altcoins took the first positions, which historically are much better than bitcoin during this period. In recent weeks, a picture has emerged in which ETH is leading the market, while other assets are trying to keep up. However, after a long and powerful growth, the indicators of cryptocurrencies were overtaken by a wave of correction. As a result, over the past day, the total cryptocurrency market capitalization has decreased by 4.5%.
The main culprit for the slight downturn was ether, which recently set a new all-time high of $4,158. After that, the charts of the asset show a slight decline, to $3,900, where the cryptocurrency again tried to cross over $4,000 with varying success. As of 12:00 UTC, these attempts were unsuccessful and ETH fell by 3.4% per day. At the same time, indicators of daily trading volumes remain at a decent level of $83 billion and are ahead of similar indicators of bitcoin. Ethereum's total capitalization surpassed Bank of America, Walmart, and Mastercard. Ether is now the top 1 cryptocurrency in the world due to active growth and constantly improving algorithms on the network. The situation is aggravated by the problems of bitcoin, which significantly oversaturated the market and sags under the pressure of bears. All these factors were the result of a significant increase in the percentage of ETH's dominance in the market - 18.5%. In the near future, the asset may continue to grow if it manages to gain a foothold at an indicator above $4,000. However, it will be quite difficult to do this due to the negativity that the report of the giant JPMorgan brought to the news agenda, according to which ETH should be worth $1,000.
XRP, which has been trampling in the corridor of $1.40 to $1.60 for more than two weeks, is more deplorable. The cryptocurrency lacks momentum to help the asset overcome the challenging $1.60 milestone. Considering the recent SEC statement, the decline in activity regarding the Ripple token is fully justified and investors are wary of the coin. In addition, the news that Ripple could become a public company after the completion of the trial was fully played by the market and did not help the cryptocurrency to get out of the difficult corridor. Taking into account the correction that has covered the market, XRP indicators may sink even lower if the asset does not have enough support at the current level of $1.42. The cryptocurrency has come close to this dangerous mark, having fallen in price by 10% over the past day.
A similar situation is observed with Litecoin, which has been marking time for more than a week. The cryptocurrency follows the momentum of the ether but has no real prerequisites for overcoming the difficult milestone of $360. Based on this, the coin fell by 10% per day and rolled back to $350. In addition to the correction that swept the market, JPMorgan experts decided to add a little negative, who were very skeptical about the main cryptocurrency at the moment. According to analysts, the real price of Ethereum is 75% lower than the current market price. This news, which coincided with the correction, may negatively affect investor sentiment and drag the quotes of all coins with it. Even less positive was the news that the Indonesian authorities are imposing a tax on profits from transactions with cryptocurrency. Recall that recently the introduction of such a tax was announced in South Korea.
Given the local correction and negative forecasts for the ETH quotes, the decline in the cryptocurrency market may drag on. Soon, it will become clear how market participants will react to the negative news background and how much this will affect the quotes of ether, which at this stage is pulling the entire market with it and contributing to the growth of small cryptocurrencies.
