Ether continues to trade lower in Bitcoin’s shadow in the days leading up to its stock-crushing hard fork event. No hard fork love for Ethereum as ETH price plunges to a three-week lowALTCOIN WATCH. Ether (ETH) prices fell below $30,000 on Tuesday in tandem with Bitcoin (BTC)’s decline.
The ETH/USD exchange rate fell 5.41% to an intraday low of $1,720 – or about $400 above its all-time high in 2018 – which should serve as an important psychological support level.
The pair’s bid had risen to $1,994 on the Coinbase exchange on Sunday. Meanwhile, the price action was strikingly similar to that of Bitcoin, the flagship cryptocurrency that peaked at $32,450 on Sunday but later corrected to just $29,507 during Tuesday’s session.
Bitcoin Price Trends Continue to Affect Ether Interim Bias
The plunge also followed the departure of Ethereum network co-founder Anthony Di Iorio from the cryptocurrency industry, in part over personal safety concerns. Di Iorio, who is likely a major Ether holder, hinted to Bloomberg in an exclusive interview that he would liquidate his entire crypto-related holdings, without specifically mentioning the native token of the Ethereum blockchain. “[Crypto is] really a small percentage of what the world needs,” he said, adding that he “wants to diversify to not be a crypto man, but be a man who tackles complex problems.” (XRP) Ripple price has risen.
Hard Fork FOMO Rejected?
The latest sell-off surfaced despite Ethereum’s impending network upgrade. The major code update, also known as the London hard fork, is another step in making Ethereum a faster and scalable proof-of-stake network from an energy-intensive proof-of-work network.
But the most talked about feature in the upcoming hard fork is deflation. The upgrade expects to burn some of the base fee paid to miners, reducing the supply of Ether. Crypto education platform CoinMonk noted in March that the London hard fork upgrade could ideally burn 1 million ETH in 365 days, which is nearly 1% of the network.
Grayscale, a New York-based digital asset investment firm, also wrote in a report in February that deflationary dynamics would prove extremely positive for Ether prices. ETH/USD rose nearly 180% to its all-time high of $4,385 after the report came out.
The latest downturn in Ether markets has raised serious concerns about the London hard fork’s ability to counter bullish bias. For example, analysts at TradingView said in their timeline updates that inflationary pressures from US markets may have boosted ETH/USD’s downward sentiment.
Ether has crashed by more than 60% from its record highs
In detail, the US Department of Labor released its June Consumer Price Index (CPI) report last week. The latest data shows that US inflation rose 0.9% to 5.4% in June, the fastest just before the 2008 financial crisis. Bitcoin and Ether prices fell after the report was released.
“Normally, cryptocurrency is viewed by digital asset investors as a hedge against inflation,” TradingView analysts wrote, adding:
“In this case, however, the data itself is less important than what the Federal Reserve might do in response to that data. Traders began selling cryptos such as Ethereum and Bitcoin out of fear that continuously rising inflation would prompt the Fed to reverse its quantitative easing policy. SHIB Shiba inu rate has risen.
But not everyone is bearish. For example, Konstantin Anissimov, executive director of the CEX.IO exchange, expects Ether prices to hit $3,000 after the London hard fork.
“As things stand, the Federal Reserve has increased the size of its balance sheet to over $8 trillion as of early 2020 — a substantial increase,” he said, adding that lowered prices in the cryptocurrency markets represent an opportunity. are for investors against despondency. to safe havens in traditional markets.
“Market investors can collect the coins at a discount while relying on their abilities to act as the proper hedge against the inherent inflation. Both coins with the revamped buyups are likely to retest new price levels at $45,000 and $3,000 respectively.
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