Similar to the Bitcoin course, the Ethereum course had to accept a sharp drop in the last 2 to 3 days. Ethereum lost 3.5% in value in the last 24 hours. After the Bitcoin crash, another drop in the Ethereum price could follow in the coming days. Ether Price Falling Below $1,500?
How has the Ethereum price moved in the last few days?
Over the past few days, the price of Ethereum has experienced a decline. In the last 24 hours, ETH has fallen by approximately 3.5% and has dropped to $1,770. This decline is similar to that seen in Bitcoin’s price. Prior to this, Ethereum’s price had mostly moved sideways for a few weeks.
In early April, Ethereum’s price was above $2,000. However, when Bitcoin’s price failed to break through the $30,000 resistance level, Ethereum’s price also experienced a significant drop. As a result, the price of Ethereum has been bearish for the past four weeks.
Will the Shanghai update subsequently weigh on the price?
Several weeks ago, Ethereum’s scalability received a significant boost with the implementation of the Shanghai update. This update allowed network participants to withdraw their staked Ether tokens. Despite concerns that heavy selling of these tokens would cause a drop in the Ethereum price, such a decline did not materialize.
However, the sale of staking tokens could potentially have a medium-term impact. In the period following the Shanghai update, Ethereum has lost ground to Bitcoin, and it remains to be seen whether this trend will continue in the coming weeks.
Another reason for the poor performance could be the high transaction fees at Ethereum. Similar to Bitcoin transaction fees, these have increased significantly in recent days.
Ethereum Price Crash below $1,500?
The Ethereum price last fell below the $1,500 mark in early March. As a result of the banking crisis in the USA and the massive profits in the weeks that followed, the price was able to climb over $1,800 at the time. The $1,700 mark formed a strong support.
If support breaks, a drop below $1,500 is quite possible in the next few days. Much will depend on whether Bitcoin and Ethereum transaction fees recover, which could be a bullish signal. In this case, the Ethereum price could move back towards $2,000.