Ethereum
Ethereum Price: Will Ethereum Eventually Drop to $3,000?
The downward trend in the crypto market has not spared any cryptocurrency in the market today, as every crypto chart is stained with red patterns, and the falling Ethereum price is no exception. The possibility of Ethereum hovering around $3,000 doesn’t seem like a big deal now, as the crypto is down 18% in a week.
So, what is happening with the price of Ethereum? Will it fall back below $3,000 after surpassing $4,000 just a few days ago? Let’s discuss it in this blog.
Ethereum Price Analysis
Ethereum is currently trading at $3,244.67 after a 7% decline from yesterday and continues to fall even more over time. The same thing is happening with the market capitalization, which has also fallen by 7.5%. However, crypto trading volume tells a different story. Ethereum trading volume jumped 66% from yesterday, bringing the value to $31,064,685,795.
Read also: The best crypto losers of the week and why?
This unexpected drop occurred after the price of Ethereum hit the high of $4,066 on March 13, and instead of moving bullishly towards an even higher high, the price ended up falling. THE Ethereum Dencum Upgradewhich was supposed to push the price of Ethereum to the ATH value, failed to do so.
Ethereum is only 33% away from its ATH, and a significant push is needed for the crypto to reach top value.
Main reasons why Ethereum price is falling
The overall crypto market is on a downward trend, and even Bitcoin has failed to survive the fall. It went from the $73,000 mark to the current $62,000.
There are two main reasons impacting the overall crypto market, including the price of Ethereum. It’s about the Fed meeting and the fall of the Indian stock market.
Fed meeting
Fed meetings have considerable influence on the crypto market as they discuss interest rates and new policies for the US economy. Before every such meeting, a significant price drop occurs in the crypto sector. Each year, eight such meetings are scheduled, one of which began today and will end tomorrow at two o’clock Eastern time.
Nervousness surrounds the crypto market ahead of these events Fed Meetings, causing massive turbulence in token prices. This happens because the investor is worried about the outcome of these Fed meetings. What if officials changed their position on the cryptocurrency industry? This can make or break the crypto market. And any new monetary policy may impact the value of the dollar in the overall market, ultimately affecting the crypto market as crypto trades against Fiat.
ETF Spot Approval Failed
The SEC has not yet provided a clear answer on the Ethereum Spot ETF approval. According to Polymarket’s forecast, the chances of ETF approval by May are limited to only 28%, which is too low to meet new expectations. That data fell from a 75% chance of approval in January to a 28% chance of approval in March, upsetting investors.
Compared to the Bitcoin Spot ETF, the SEC doesn’t seem very happy with the Ethereum ETF, especially when the SEC has never openly talked about Ethereum being a security or commodity.
There also appears to be political pressure from Senators Jack Reed and Laphonza Butler on the SEC. They blocked the SEC from approving other cash ETFs. This is supposed to be the right decision to save investors, because the approval of Bitcoin ETFs opened the way to fraud and manipulation.
Due to the ongoing debates between the SEC and the Ethereum community, the price of Ethereum has been compromised.
Conclusion
Ethereum price has seen a slight decline in recent days and has been moving closer to the $3,000 mark rather than the $4,000 mark. It is quite simple to understand that the chances of ETH falling are comparatively easier than the chances of rising. Apart from this, the Ethereum chart signals the presence of strong bearish sentiments, indicating the possibility of a price decline.
Ethereum is one of the largest and most popular cryptocurrencies. These drops are more of a temporary drop with room for improvement and the possibility of changing the tables.
Learn more First signs to spot before the next crypto market crash