Ether Could Be Losing The Support Of $1.6K

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Ether’s base price increased by 31.3% from 10th March to 18th March, which then coincided with the injection of the Federal Reserve of $300 billion which would then address the insolvency of the Silicon Valley Bank. Since that point in time, the price of Ether has been able to maintain a daily closing price above the range of $1,600.

However, investors have now started casting doubt on the ability of the cryptocurrency to sustain the support level, considering the prevailing bearish sentiment in the space of cryptocurrency, coupled with the declining metrics on the network of Ethereum. Over the last six months, the sector of cryptocurrency has been routinely plagued by multiple negative developments. Notably, the DGC, or the Digital Currency Group- which is the owner of the Grayscale mutual fund manager, has also been through major financial troubles. 

Ether Could Go Through A Price Drop If Things Continue

It has also been announced that two of the major global exchanges, Coinbase and Binance, are currently facing a bunch of legal action from the United States Securities and Exchange Commission. Additionally, investors had also expressed their investment when a bunch of requests for futures-based Ether exchange-traded funds came up in early August. However, one needs to note that these instruments, unlike a few other ETFs, will not really involve actual ETH coins if they end up being approved.  

In the middle of this, quite a few developments have left the enthusiasts of Ether somewhat disappointed. The payment processor, Visa, has gone on to incorporate the blockchain settlement capabilities of Solana, following the USD Coin of Circle which has introduced native transfers and accounts on the Base chain. In response to that, Coinbase promptly put out its intention of assisting partners in converting the old and bridged versions of USDC to the completely new format.