After falling below $1,000 over the weekend due to growing economic fears, a weak stock market, and rising inflation, Ethereum saw a price rise on Monday. As of Monday morning, Ethereum was trading near $1,100.
Due to a broader market retreat from risky assets, the price of Ethereum, like Bitcoin, has been extraordinarily volatile in recent weeks.
After a significant inflation report missed expectations and the Federal Reserve raised interest rates by 0.75%, stock markets plummeted substantially, and crypto markets followed suit.
The Ethereum price drop is part of a larger crypto dip, with the cryptocurrency market as a whole shedding more than $1 trillion in just a few months. The values of major tokens have plummeted, including Bitcoin, which has lost 70% of its value since November 2021.
The Ethereum price hasn’t been able to maintain its strong bullish momentum in recent days, as the daily chart shows. Nonetheless, the good news is that the coin is most likely to start moving upwards.
So far in 2022, Ethereum has underperformed bitcoin, which experts believe is due to growing expectations for the network’s switch from proof-of-work to proof-of-stake.
Ethereum just completed atest marge on ıts ropsten network, which is a necessary stage in the company’s big software upgrade, which will be finished later this summer.
Its upgrade, dubbed “the Merge” by investors and engineers, would modify how Ethereum transactions are ordered, making it more efficient and sustainable for mass use. The move would definitely influence the token’s price in the longer term.