Ethereum
The Ethereum price is struggling, a few days after it reached its all-time high (ATH) of $2,550. ETH has dropped for the past two consecutive days and is now 17% below its ATH. Its market value has dropped to more than $246 billion. Other currencies like Bitcoin, Ripple, Binance, and Cardano have also crashed.
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What happened: Ethereum price rallied last week because of two main reasons. First, for the first time ever, Coinbase became a public company, which is a sign that cryptocurrencies are going mainstream.
Second, US bond yields and the US dollar declined during the week. This happened as investors downplayed the overall impact of the recent US inflation rates. Data released on Tuesday revealed that the headline CPI rose to 2.6% in March, higher than the Fed’s target of 2.0%. Therefore, analysts believe that consumer prices will stabilize and drop back to 2.0% or below.
Ethereum price dropped during the weekend mostly because of the sharp decline in Bitcoin. In most cases, ETH and other currencies usually drop when BTC falls. The drop is also because of profit-taking and selling the news situation.
Looking at the daily chart, we see that the ETH price retreat is also because of technical reasons. On the chart, we see that when the price rose to $2,550, it actually hit the upper side of the ascending channel. Also, we see that the pair tested the 23.6% Fibonacci retracement level during its crash this weekend.
Therefore, in my view, I suspect that ETH price will resume the upward trend as bulls buy the dips and attempt to test the all-time high. However, in the immediate near term, we should not rule out a drop to $1,880, the lower side of the channel.
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