IG: The Ethereum price traded below the mental level of $ 3,500 on Friday. It is now these developments that count.
- Ethereum price is trading below $ 3,500
- Minus 13 percent per week
- Bitcoin remains on shaky feet
Ethereum price below $ 3,500 – an eye on the 3,000 mark?
Ether, the second most important currency in terms of market size, is quoted on Friday and thus immediately before the weekend at $ 3,380 per unit, well below the psychological hurdle of $ 3,500. In addition to the latest exchange rate shock on Tuesday, the currency is now also weighed down by a technical situation that has deteriorated again.
Ether, Bitcoin and Co are also impressed on Friday by the price volatility at the beginning of the week.
The introduction of Bitcoin in El Salvador, Central America, has left its mark to this day.
On Tuesday, the state was the first country to make the cryptocurrency Bitcoin the official means of payment.
Businesses that are technically able to accept the cryptocurrency must also do so.
Ethereum price chart
According to surveys, Salvadorans are skeptical of the introduction of BTC as legal tender
Two-thirds of respondents in a recent poll voted for the law to be repealed. 70 percent said they would rather use the US dollar. Overall, skepticism remains high not least in the population, but also beyond.
Regulatory authorities around the world could find themselves increasingly compelled to push their regulatory efforts.
Overall, the situation remains fragile.
With bargain hunters holding back for the time being, further losses could be imminent over the weekend.
The cow doesn’t seem to be off the ice yet.
Ethereum course: these are the points that matter now
The interest in digital art, so-called NFTs (Non-Fungible Tokens) has literally gone through the roof in the last few weeks and months. In addition to the interest in so-called decentralized financing services (DeFi), this trend could also accelerate further. This development would tend to be rated positively for Ether, as a large part of the functions are based on the underlying Ethereum blockchain.
The “London upgrade” called EIP-1559 is also gradually unfolding its effect. So far, around 230,000 ETH with a value of 800 million dollars have been withdrawn from circulation, which reduces the supply volume against this background.
From a technical chart point of view, regaining the $ 3,500 mark remains elementary in order to be able to create new upward momentum.
Overall, follow-up purchases could push the price back up to $ 4,000 faster than expected.
In the worst case, however, a slide to the mental mark of $ 3,000 is conceivable.
Investors should keep an eye on the weekend ahead.