The month clearly hasn’t been kind to the crypto market, especially Etherum. Its price has dropped sharply, falling below $2,500 after a massive $1.5 billion hack on the Bybit exchange last week. Reports say the attack was carried out by North Korea’s Lazarus Group.
This triggered a 25% crash, and now, experts like Benjamin Cowen are warning that Ethereum might fall even further, possibly below $1,000.
Right now, Ethereum’s price is not showing signs of recovery. It has already broken through its major support levels, which means it could keep dropping. Some experts compare it to the price drops that happened last year in April and August.
In both cases, ETH fell hard but later bounced back. That might not happen this time if the overall market stays weak.
The U.S. Federal Reserve’s monetary policy is one thing that seems to be affecting the price. The Fed controls how much money flows into the economy, and right now, there’s no stimulus.
This is bad news for the crypto market because less money in the market means fewer people are buying. In short, this means there’s no liquidity in the market.
“If the Fed stays firm on tightening, Ethereum could drop below $1,500, possibly testing $1,200 or even lower before stabilizing,” said market analysts
Meanwhile, crypto analyst TraderPA says Ethereum is oversold, which means the price might be lower than it should be. He believes ETH is sitting in a key price range where buyers could step in.
“Ethereum has bounced back strongly in the past after hitting these levels, and if history repeats, we could see a quick recovery,” he said.
If the Federal Reserve changes its policy and starts pumping money into the economy by next month, Ethereum could make a strong comeback. If ETH can stay above $2,000, it could rise to $3,500 or even $4,000. But if the selling pressure continues, Ethereum could fall more before it recovers.
Also Read: Bitcoin Drops 11%, But Analyst Predicts Massive Comeback Soon
