Following Jerome Powell’s hawkish comments, Ethereum (ETH) prices fell along with other cryptocurrencies.
Ethereum fell 9% by Friday’s close. It was trading at $1,555 per token. Bears were looking to break the $1,500 barrier. The dip happened after downside pressure late afternoon had seen the ETH/USD pair snap below $1,600 – the losses mirroring Bitcoin (BTC), which broke below $21,000 to touch intraday lows of $20,620.
Ethereum and the merger factor
Ethereum’s losses on Friday helped push the altcoin to lows last seen in late July, when ETH/USD traded in the $1,400 range. It is still well above the mid-June floor but the current weakness comes amid an overwhelmingly positive period for smart contracts platform.
Ethereum developers this week confirmed the “Merge”, a highly anticipated Mid-September will be the event for the network.
The number of $ETH Deposits to the Beacon Chain Contract are now at a stable, but macro low of 220 daily.
This could be a sign that a stable holding structure has been achieved, as investors are awaiting a successful Merge, which is scheduled for mid-September.
— glassnode (@glassnode) August 23, 2022
ETH deposits into Beacon Chain have slowed, but the community is positive about potential for the Ethereum Blockchain and, therefore, for the price Ether.
But even as many analysts see the “Merge” as the catalyst that could trigger the next market cycle, there are calls that the market has already priced in the event.
Wall Street crashes after Fed Chair remarks
Stocks also fell after Powell said at the Jackson Hole symposium that the central bank had a job to do and that they would keep at it “till it’s done.”
The Fed Chair stated that it was essential to continue its aggressive approach to restoring price stability. The Fed Chair noted that it wasn’t time yet for the central bank to adopt a loosening policy.
His remarks seem to have rattled markets. S&P500 fell more that 3%, Nasdaq Composite dropped nearly 4%, and Dow Jones Industrial Average fell over 1,000 points.