The crypto market downtrend hasn’t spared any cryptocurrency of the market today, as every single crypto chart is stained with red patterns, and Ethereum price fall is no exception. The possibility of seeing Ethereum sit around $3K doesn’t feel like a big deal now because the crypto has dropped 18% in a week.
So, what’s happening with the Ethereum price? Will it fall back to the $3K mark after surpassing $4K just a few days ago? Let’s discuss that in this blog.
Ethereum Price Analysis
Ethereum is currently trading at $3,244.67 after a dip of 7% from yesterday and is continuing to move even lower with time. The same is happening with the market cap, as it dropped by 7.5% as well. However, the trading volume of the crypto is telling a different story. Ethereum trading volume has surged 66% from yesterday, pushing the value to $31,064,685,795.
Also Read: Top Crypto Losers Of The Week And Why?
This unexpected fall happened after Ethereum’s price touched the peak of $4,066 on the 13th of March, and instead of moving bullishly for an even higher peak, the price ended up dropping. The Ethereum Dencum Upgrade, which was supposed to push the Ethereum price to ATH value, has failed to do that.
Ethereum is just 33% away from its ATH, and a prominent push is necessary for the crypto to reach anywhere near the best value.
Top Reasons Why Ethereum Price Is Dropping
The overall crypto market is following a downturn trend, and even Bitcoin couldn’t manage to survive the fall. It has descended from the $73K mark to the current 62K.
Two primary reasons are impacting the overall crypto market, including Ethereum price. These are the Fed’s meeting and the fall in the Indian stock market.
Fed Meeting
Fed meetings have a massive influence on the crypto market as they discuss the interest rates and new policies for the US economy. Before every such meeting, a significant price drop happens in the crypto industry. Every year, eight such meetings are scheduled, out of which one has started today and will get over tomorrow at two by Eastern time standards.
Nervousness surrounds the crypto market before these Fed meetings, causing massive turbulence in the token prices. It happens because the investor is concerned over the result of these Fed meetings. What if the officials change their stances on the cryptocurrency industry? That can build or destroy the crypto market. And, any new monetary policy can impact the Dollar value in the overall market, affecting the crypto market in the end as crypto trades against Fiat.
Failure In Spot ETF Approval
SEC hasn’t yet provided any clear answer on the Ethereum Spot ETF approval. According to the Polymarket prediction, the chances of ETF approval by May month are restricted to 28% only, which is too little to carry further expectations. This data has shifted from the 75% approval chances in January to 28% in March, upsetting the investors.
Compared to Bitcoin Spot ETF, SEC doesn’t seem very pleasing because of the Ethereum ETF, especially when SEC has never openly talked about Ethereum being a security or commodity.
There also seems to be political pressure through Senators Jack Reed and Laphonza Butler on the SEC. They have refrained the SEC from approving any more spot ETFs. It is supposed to be the right decision to save the investors as the approval of Bitcoin ETF has provided passage to fraud and manipulation.
Because of the ongoing debates between the SEC and the Ethereum community, the Ethereum price has been compromised.
Conclusion
Ethereum price has had a minute downfall in the last few days and has reached closer to the $3K mark than the $4K mark. It is straightforward enough to comprehend that the chances of ETH falling are comparatively easier than lifting. Apart from this, the Ethereum chart signals the presence of powerful bearish sentiments, indicating the possibility of a price fall.
Ethereum is among the biggest and the most popular cryptocurrencies. These falls are more of a temporary fall with room for improvement and the chance to change the tables around.
Read more Early Signs to Spot Before the Next Crypto Market Crash
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/trending/ethereum-price-will-ethereum-endup-falling-to-3000/
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