On December 15th, Ether saw a fall in price after it failed to go past the resistance level of $2320. As such, it is regarded as a price correction. The cause behind this is most probably the regulators’ negative remarks. Along with that, there were two other events that probably influenced it. Firstly, almost the whole Web3 ecosystem was affected by a recent. Secondly, the network of Ethereum saw its activity reduce. Finally, a former developer of the Ethereum Foundation aired some scathing criticism.
Several Factors Contributing To Ethereum’s Downturn
Over the previous 11 days, there is an alternative perspective available should the time period be analyzed from a broader viewpoint. At an immediate glance, the fluctuations of the daily close were relatively narrow at 7.6%. Before the token had entered its present range between $2190 and $2360, it had rallied and saw an increase of 40%. However, this absence of any clear direction can simply be a sign of a period of accumulation.
Ether’s price has also undoubtedly been influenced by the recent ETF hype. This is particularly the case following BlackRock’s confirmation of its intention to initiate its spot Ether ETF on November 9th. BlackRock is an international asset manager worth $9 trillion. On November 21st, there was further momentum build-up with analysts from Bloomberg ETF reiterating that their Bitcoin ETF has a 90% chance of getting approved before January 10th.
However, on December 15th, there was a change in the landscape of regulations. The SEC stated that it denied one of Coinbase exchange’s petitions. Gary Gensler claimed that existing regulations and laws are applicable to markets for crypto securities. He further added that the present is the best time to take action when it comes to regulations.