Ethereum price tests $3,000 mark; traders now awaiting "a catalyst"
Ethereum price is starting to test the closely watched $3,000 price threshold as the broader drop in risk appetite in some of the more speculative areas of markets continues to weigh on some of last year’s best performing assets. The second largest cryptocurrency by market value after Bitcoin fell for a fourth day Wednesday, dropping as much as 3.7% to $3,048, according to data compiled by Bloomberg. The last time that Ether, as the native currency of the Ethereum blockchain is known, slid below $3,000 was on Jan. 10. The token surged about 400% last year, compared with a gain of 60% for Bitcoin. Ether is down about 15% in January.
Other digital assets were similarly hit by investors’ weakening sentiment. As of 2:10 p.m. in London, Bitcoin was down around 0.6% lower to $42,149. Smaller digital assets known as altcoins were also affected, with Cardano’s ADA token and Solana’s SOL falling as much as 10.1% and 3.7% respectively, according to pricing data from CoinGecko.
The ongoing slump in crypto prices far below their all-time highs are likely the result of investor sensitivity to speculation around potential interest rate rises and the tightening of monetary policy, according to Susannah Streeter, senior markets analyst at U.K.-based brokerage Hargreaves Lansdown.
“The recent falls may drive more crypto fans into the market in expectation of a steep recovery to come,” Streeter said by email from London. “There is a chance that if investors do pile in, Ether could shoot back up to recent highs, but as we’ve seen with its rollercoaster ride so far, it’s unlikely to stay there for long.”
This month a spike in popularity for Cardano saw its ADA token jump as much as 30% in a seven-day period last week, ahead the launch of a new
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