Ethereum price has retreated in the past trading sessions as investors process this week’s recovery rally. ETH has dropped to $2,560, which is 12% below this week’s high of $2,915. It has a market value of more than $310 billion and is substantially below the year-to-date high of $4,380.
What happened: Like all digital currencies, Ethereum price crashed sharply last week amid the tragic cryptocurrency sell-off. The price fell to a multi-week low of $1,734. It then made a steady recovery and rose to a high of $2,912. Today’s decline is part of the overall decline in cryptocurrencies, with Bitcoin having dropped by more than 3% in the past 24 hours.
The currency has dropped even as WisdomTree plans to launch a new Ethereum ETF. The fund will make it easier for institutional investors to have exposure to the industry. VanEck has also filed an Ethereum ETF. So, what next for ETH prices?
Ether has also dropped as the US dollar bounces back ahead of the important Personal Consumption Expenses (PCE) data that will come out later today. Analysts expect that the PCE will rise by the fastest pace in more than three years. If the number comes out better than expected, it will mean that the Fed will likely hike interest rates earlier than expected. Indeed, the dollar index has jumped ahead of the PCE data.
Ethereum price prediction
The four-hour chart shows that the ETH price faced a strong resistance at the $2,902 level this week. Today, the currency has declined and is approaching the 23.6% retracement level. It has also dropped below the 50-day and 25-day exponential moving averages (EMA).
Therefore, there is a possibility that the currency will decline further as the selling pressure intensifies. If this happens, the next level to watch will be the 23.6% retracement at $2,345. However, a jump above $2,902 will invalidate this prediction.