Here is the reason for the low price and expectations of Ethereum

The price of Ethereum fell by more than 6 % on Friday, continued the declining direction that started on March 24 when it reached its peak at $ 2.105.

ethereum (EthHe decreased to his lowest level in $ 1880, its lowest level since March 18. Most of the gains that have been made in the past two weeks have now been erased.

Ether crashed after the United States released hot inflation data, noting that interest rates have increased for a longer period. The basic personal consumption expenditure index increased from 2.7 % in January to 2.8 % in February. The PCE address increased to 2.5 %, which is higher than the Federal Reserve of 2.0 %.

These numbers mean that inflation will remain more sticky for a while, especially after Donald Trump is executed Definitions on the day of liberation. High inflation means that the Federal Reserve may carry higher interest rates for a longer period.

This explains why the assets fraught with other risks are decreased after the PCE report. The S& P 500 index decreased by 1.50 %, while NASDAQ 100 and Dow Jones decreased by 2 % and 1.2 %, respectively. Most cryptocurrencies, including bitcoin (BTCCardano (LeadIt was also destroyed.

Price ethereum also decreased with a decrease in fear and greed index to 25 before the Trump tariff. Economists warn that these definitions may lead to stagnation, erasing some of the growth that occurred during the era of Joe Biden.

Moreover, Wall Street investors remain on the margin as Ethereum challenges continue. Sosoverue data shows that Spot Ethereum ETFS has only one time in March. They added 14.8 million dollars of net assets on March 4, and they have taken the assets since then, which amounts to cumulative assets to only $ 2.4 billion. All Ethereum ETFS only has $ 6.86 billion in assets.

Moreover, ETHEREUM has continued to lose its market share in the main industries such as decentralized financing, non -applicable symbols, and decentralized exchanges. Layer-1 chains such as Sonic and Berachain, and Layer-2 networks like al-Qaeda and Arbi.

Technical analysis of Ethereum price

The ETH price has also been shattered for technical reasons. The weekly graph shows that it formed a triple style of $ 4000 and the neckline at $ 2,130, its lowest level in August last year.

Ethereum decreased to the bottom of this neckline earlier this month, then re -testing it this month. Fracture and restoration pattern is a sign of popular continuity. It also formed the pattern of downtown science, and includes a vertical line and some integration.

Therefore, there is a risk from the collapse of the currency to $ 1537, which is its lowest point on October 9. The step is higher than the resistance level at $ 2,131 will nullify the landing.