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- Cryptocurrencies
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- Industry
- Geography
Ether's price reached above $1,150 this June 19, marking 30%-plus gains in just two days. However, at the beginning of the new weekly session this June 20, the ETH/USD pair hinted at giving up its weekend gains, with its price plunging by almost 9% from the $1,150 high. PostyXBT, an independent market analyst, told his 79,800 followers to be careful about the latest ETH price rally, noting that the move "would make for a clean fakeout." The statements appear as Ether, alongside other top cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Cardano (ADA), have entered a bear market.
ETH/USD now trades 77% below its $4,951-record high, but some tokens are down 90% from their 2021 peak levels. Concerns about the Federal Reserve's hawkish policy to tame inflation has stoked these sell-offs, hurting parts of traditional stock markets in tandem. In detail, the U.S. central bank plans to hike benchmark rates in 2023, which may leave investors with lesser liquidity to buy riskier assets like BTC and ETH. Additionally, forced selling and liquidity troubles led by the so-called decentralized finance, or DeFi, sector have added downside pressure on the crypto market, thus limiting Ether's prospects of continuing its recovery rally moving forward. Analyst "Capo of Crypto" states that ETH has not bottomed out yet and that its price could fall further toward the $700–$800 range.
Several crypto investors have almost lost hopes for Bitcoin regaining back its value and rooted for ETH to take over the crypto market. Since the Ethereum 2.0 upgrade is due for its launch, it is quite expected for Ethereum to upsurge in value, but it currently seems like investors are hardly curious about it anymore. Even after the Ethereum Merge upgrade is expected to be launched this year itself, the current volatility of the market has made things worse Ethereum and the Ethereum 2.0 upgrade are nowhere near causing any hype in the market.
Recently, crypto experts reported that Ethereum 2.0 might not be a hit and instead will turn out to be just the opposite of what everyone is expecting. Crypto fanatics generally tend to appear more enthusiastic when the market is producing a new launch. Back in 2021, the price of Bitcoin skyrocketed after the first Bitcoin Futures ETF was approved by the SEC in the US. But unfortunately, Ethereum's upgrade has failed to cause such a buzz in the market and is experiencing massive sell-offs by its investors. It is quite evident that investors are spooked by the continuous blows from the market, one after the other.
