Definition ∞ An Ethereum selloff describes a period of significant selling pressure on the Ethereum cryptocurrency, Ether (ETH), leading to a notable decrease in its market price. This event often results from various factors, including broad market corrections, negative news specific to the Ethereum network, or large liquidations by holders. Such a decline reflects a reduction in investor confidence or a shift in market sentiment. These periods can affect the broader digital asset market.
Context ∞ Ethereum selloffs are observed during periods of market uncertainty or after major protocol changes. For instance, concerns over network congestion, high transaction fees, or delays in upgrades can contribute to selling pressure. Market analysts closely monitor on-chain data and macroeconomic indicators to predict and understand the causes of these price movements. The overall health and development trajectory of the Ethereum ecosystem, including its transition to a proof-of-stake consensus, heavily influence investor perception and potential future selloffs.
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