On Tuesday, the Ethereum price fell by 8%, following the overall correction in the cryptocurrency market and even outperforming Bitcoin’s (BTC) dip. This has sparked concerns as ETH nears important support levels, putting its $3,000 mark at danger.
On October 29, the central bank announced its second interest-rate cut of the year. However, during the subsequent press conference, Fed Chair Jerome Powell expressed uncertainty about the possibility of another reduction in December.
Adding to the ongoing Ethereum price correction, mid-October saw US President Donald Trump announce new tariffs on China due to its restrictions on rare earth exports. This announcement triggered a flight of investors from cryptocurrencies to safer assets such as gold.
They highlighted that a breakdown below the altcoin’s yearly open of $3,337 might push the Ethereum price to $2,800. For a positive reversal, they believe ETH must retake $4,000 and close above this level on a weekly basis.
A decline of this magnitude would mean an additional 45% increase for ETH, which could also lead to a deeper correction in the broader altcoin market.
As of this writing, ETH is trading at $3,100. This represents a significant gap of 32% between the current trading prices and the all-time highs, which could not be re-tested before the end of the year unless a new recovery occurs before the weekly close.
Featured image from DALL-E, chart from TradingView.com
