Home - Ethereum - Ethereum Price Prediction as ETH Dips Below $1,500-What Next?

James Carter

February 15, 2023

Ethereum Price Prediction as ETH Dips Below $1,500-What Next?

The value of Ether (ETH), the cryptocurrency that runs the blockchain that enables smart contracts on Ethereum, fell below $1,500 on Monday and hit its lowest level in almost a month in the $1460s. Ether is the cryptocurrency that drives the blockchain that enables smart contracts on Ethereum. This was the first time that it had been below $1,500. Last time I checked, the world’s second-largest cryptocurrency by market capitalization was trading approximately 2.0% lower on the day at levels around $1,480. This represents a loss of almost 13% from earlier monthly highs in the $1,700 range. Despite this, cryptocurrency is still up almost 25% in the year. However, gains of this magnitude can soon be erased in the cryptocurrency markets.

Concerns Over Regulation Put Pressure on ETH

The bitcoin market is still being held back by concerns about the potentially harsh actions of US regulators. On the weekend, it was reported that the US Securities and Exchange Commission (SEC) plans to sue the US-based Paxos Trust Company, which issues BUSD stablecoins, for breaking investor protection laws by selling stablecoins as unregistered securities. These laws prohibit the sale of stablecoins under the guise of registered securities.. Paxos Trust Company is located in the U.S. The move has been met with strong backlash from the cryptocurrency community, namely from those who question how investors can have an “expectation of profit” when purchasing a stablecoin such as BUSD, which is intended to have a constant value relative to other cryptocurrencies.

Ethereum Price Prediction as ETH Dips Below $1,500-Where Next?

This comes after Kraken reached a settlement with the SEC and terminated its crypto-staking program, which the SEC had also classified as an unregistered security. The SEC’s labeling of the program as a security contributed to Kraken’s decision to terminate the service. Since the Ethereum blockchain made the switch to a proof-of-stake method in September 2022, Ethereum network validators have been facing increased levels of uncertainty as a result of governmental action taken against staking services in the United States.

Also Read:  Ethereum Is Now The Twenty-Fourth Largest Asset In The World!

Lido Finance’s Head of Business Development at the Decentralized Autonomous Organization (DAO), which oversaw the Decentralized Finance (DeFi) protocol. Jacob Blish stated not too long ago that the latest action by the SEC to crack down on staking could have unpredictable repercussions for decentralized finance. Lido Finance is the most prominent example of a decentralized financial protocol that provides services for ETH liquid staking.

Coinbase is the largest US-based exchange, and it also provides a service that allows users to stake Ethereum. Over the weekend, executives from Coinbase stated that they would be “glad to defend” staking in US courts if it were brought before them.

Ethereum Price Prediction as ETH Dips Below $1,500

Price Prediction: Where Will ETH Be Headed Next?

Support for Ether may now be found at its 50-Day Moving Average (DMA), which is located at $1,470; however, a challenge of the 200-Day Moving Average (DMA), which is located at $1,440, is a possibility if regulatory concerns continue to dampen near-term sentiment. Traders may be hesitant to follow another major surge lower on Monday due to the close proximity of important US Consumer Price Index (CPI) data for January, which will be released on Tuesday. These data will further shape the outlook for US Federal Reserve policy.

The possibility of a downward surprise providing some relief to ETH and allowing the cryptocurrency to recover back into the $1,500 range is not out of the question. A monthly acceleration in price pressures is already anticipated by the consensus; nevertheless, an upside surprise to the consensus could spark a decline to the next key level of resistance if it occurs. At this point, $1,350, the 100-day moving average, the high point from December, as well as an upward trend from November and December all coexist.

Share