Ethereum (ETH) is facing a steep price correction amid a larger market-wide dip. According to CoinGecko data, ETH’s price has fallen by 2.9% in the last 24 hours, 9.1% in the last week, 10.4% in the 14-day charts, and 11.8% over the previous month. ETH seems to be holding the $2100 price for now, but things could change over the coming days. Let’s discuss if the second-largest cryptocurrency could fall below $2000, or will Ethereum (ETH) see a rebound.
Is Ethereum Facing A Risk Of Falling Below $2000?
Ethereum (ETH) last traded at sub-$2000 price levels in late March of this year. ETH and the larger crypto market have been making slight gains over the last few months. Bitcoin (BTC) saw a recovery from the $62,000 mark in February to $82,000 earlier this month. However, the upswing was cit short amid macroeconomic and geopolitical tensions.
Ethereum’s (ETH) price dip is likely due to higher than anticipated inflation figures. The development has reduced that chances of an interest rate cut. Many were hopeful that the new Federal Reserve Chair Kevin Warsh will reduce rates after assuming office, as requested by President Trump. However, rates may have to remain unchanged, if not hiked further, to counter inflation.
Ethereum’s (ETH) price has also been impacted by rising oil prices and high bon yields. Rising oil prices have led to higher inflation, which has indirectly hampered the cryptocurrency market.
Also Read: How Solana Is Eating Away Ethereum’s Market
Given the larger bearish market environment, Ethereum (ETH) could fall below the $2000 mark if the current trend continues. According to prediction markets, there is a 56% chance that ETH will dip below $2000 before the end of this month. Nonetheless, the CLARITY Act is up for vote, which could elevate investor sentiment, if passed. However, a negative outcome could lead to additional confidence dip among investors.