Ethereum price is struggling as the ongoing cryptocurrency sell-off accelerates. ETH is trading at about $3,784, which is about 23% below its all-time high. This means that Ether has declined by more than $1,000 in the past few weeks.
There are several reasons why Ethereum price has retreated in the past few weeks. In my view, I believe that investors are just worried about monetary policy. With the Federal Reserve and other central banks meeting this week, analysts believe that things are changing. They expect that the Fed will embrace a more hawkish tone in a bid to battle inflation.
Therefore, the concern is that since the price of Ethereum jumped during a period of easy money, they will retreat when the Fed starts tightening policies. In this week’s meeting, analysts expect that the Fed will leave rates unchanged and signal that it will have several hikes in 2022.
There are also concerns about whether we are in a blockchain bubble as assets like metaverse land and NFTs surge.
Ethereum price prediction
The daily chart shows that the ETH price soared to an all-time high of $4,877 in November. It then formed a small double-top pattern. This pattern is usually a bearish sign. Since then, it has managed to move below the 25-day moving average. It has also dropped below the key support at $4,400, which was the highest level on May 13th.
Therefore, in the near ter, I suspect that the ETH price will continue falling and possibly hit the support at $3,500. However, in the long-term, the coin will likely resume the bullish trend and retest the resistance at $5,000.