- Ethereum witnessed a sharp dip within the past 24 hours.
- The drop came amid regulatory concerns.
- Worrier about Fed Reserve also weighed on crypto markets.
Ethereum (ETH) experienced a massive reversal overnight amid worries triggered by crypto regulations. The leading alt plunged towards multi-month lows of $2,860, about $1,000 lower from its ATH.
Regulatory Concerns
Ethereum and other digital coins suffered a sharp crash overnight. Bitcoin declined under the vital mark of $40K as the overall crypto market value plunged under $2 trillion. While writing this analysis, BTC trades at $38,850, while the crypto market cap stood at $1.83 trillion.
The crash occurred as market players remained worried about crypto market regulation. On Thursday, regulators in Russia suggested the nation impose a complete ban on the sector. With that, Russia will join countries like China, banning the asset class.
Also, the Fed Reserve’s paper of US CBDC triggered regulatory concerns. Fed did not highlight whether it supports the digital dollar or is against it. Meanwhile, a European regulator asked the governments to ban crypto mining. He stated that government should promote the PoS mechanism and suspend mining undertakings in the region amid electricity usage.
Meanwhile, Fed Reserve’s hawkish crypto stance within the last few months contributed to the Ethereum fall. The bank plans to introduce more than three rate hikes in 2022. Historically, crypto-assets perform well during low-interest rates and lag with surging rates.
ETH Price Prediction
The daily price chart indicates massive pressure on ETH within the last few months. The altcoin lost over 40%, translating to a bearish market. The alt plummeted beneath the 25- and 50-day MAs. Moreover, the Relative Strength Index swayed into the oversold region.
For now, Ethereum has a higher probability of extended drops, bears targeting the vital support floor at $2,500. While publishing this analysis, Ethereum trades at $2,857. Moreover, the overall crypto spectrum flashes weakness, translating to potential lows in the near time.
For now, crypto fans may need to be patient with the markets’ up-and-coming reactions. What are your views on the current market condition? Feel free to comment below.
