Cryptocurrency market continues to decline in the same way it did last October. Bitcoin (BTC), is struggling with the price of $90,000. Other cryptocurrencies have followed BTC’s trend. Ethereum (ETH), now at risk of dropping below $3000, is also not a good sign. Second-largest cryptocurrency by market capital has fallen 5.3% within the last 24 hour, 12.5% during the past month and 21.2% over December 2024. according to CoinGecko’s ETH data. Despite a downward trend in ETH, its price rose 1.7% last week. It also rose 1.8% on the charts for the previous 14 days. Discuss why ETH is suffering and if the crypto market will recover in 2026.
Why is Ethereum falling?
Ethereum’s current situation (ETH), which is a reflection of a bearish mood on the market, has been exacerbated by recent events. Bitcoin (BTC), which is the leader of the market, has been showing signs that it’s consolidating around $90,000. It is surprising that there has been such a lackluster performance in the market, given the Federal Reserve’s 25 basis-point cut this week.
Investors’ risk-averse attitude could have serious consequences for Ethereum (ETH). On Friday, silver hit a record high signalling increased flows. Participants in the market are probably worried by macroeconomic uncertainty and slow growth. Investors worry that the Federal Reserve won’t announce any further interest rate cuts in the next few months. Bearish signals may push Ethereum (ETH), below $3000.
Ethereum (ETH), despite its lackluster current trajectory, may accelerate in the next few months. Tom Lee’s Bitmine purchased 14,959 Ethereum worth approximately $46 million. It could indicate a bullish shift in the future.
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In addition, many analysts predicted that Bitcoin will reach a record high by 2026. Grayscale and Bernstein predict that the first cryptocurrency will follow a five-year cycle instead of four years. BTC reaching a new high may also trigger a rally in Ethereum (ETH).
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Source: watcher.guru
