Everyone in the crypto community was hoping that the recent crypto market crash would end soon. Despite many expectancies, the crypto market continued to sink lower. In a sudden move, the cryptocurrency market sank on an aggregate level by more than 12% in the past 24 hours. Ethereum price specifically sank lower than 3K, the fact that made investors worry for further declines. Why is Ethereum price down? Where will the Ethereum price reach next? Where’s the next support level?
Ethereum Price below 3K! What Happened?
When bad fundamental news surfaces in the crypto market, all cryptocurrencies get affected. Ethereum price was recently testing the major support level of 3K. Technical traders were hoping to catch that entry price in anticipation of higher prices. On the other hand, several recent factors affected prices.
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The CBDC draft took a toll on crypto investors, leaving them rather confused. On the other hand, the USD Feds hiked interest rates further, the fact that made not only cryptos sink, but also the equity market. Those two factors drove a small selloff, which led to a snowball effect. As a result, Ethereum lost more than 12% in the past 24 hours.
Where will Ether Price reach?
Many analysts didn’t mind the sudden 12% decrease in Ethereum’s price. In fact, the 3K was not the only important level for Ether, but the 2.8K was also critical. Prices before showed several rebounds from that specific price area delimited by 2.65K and 2.8K. The last time prices of Ether were around that level was back in September 2021, and prices went up towards the all-time high of 4.8K.
Not only that, but prices also consolidated around 2.8K for almost a week before they rally back upwards. Today, prices hit for the second time in that specific area. Can prices push back upwards now? Well, there are 2 main factors that would push this drive.
Will Ether go back up?
In order for Ethereum to go back up, there are 2 main events that need to occur:
- Good fundamental news to drive the buying power again
- Global ease of government restrictions
- Crypto investors gaining confidence to enter the market again
The above points might sound easy to achieve and basic, but those are the main drivers to boost the crypto market again. Failure in achieving any of the above might bring Ether prices further lower, specifically towards the next support level of USD 1,800.
In any case, we advise all crypto investors to remain on the lookout when it comes to managing their own crypto portfolio. The downtrend seems to remain in place, and the current stance of investors should be active traders whenever there is high volatility in the market.