Why Ethereum (ETH) Might Crash Soon

Ethereum (ETH) rose 44% over the last week, fueled partly by the Chinese-United States trade agreement but also by the Ethereum Pectra

Ethereum price is showing signs of slowing down after rising over 44% in the last week, largely due to the Ethereum Pectra upgrade launch that went astoundingly well.

Where Next For The Ethereum Price?

The crypto is trading at $2,524 at the time of writing, where it has decreased by 0.05% over the last 24 hours. The coin is now down around 54% from its all-time high of $1,548, which was reached in January 2022.

The Pectra upgrade hype has also died down a bit now, and the concern is that this could cause the coin to lose momentum quickly. The upgrade managed to hard fork without any major issues, which is a feat considering the coin would not be live for a short period of time and there are every time there is a major change to the coin.

Analysts compare this to trying to fix a high performance car while it is in motion, so a number of things could go wrong. But thankfully for ETH investors, the hard fork went smoothly.

What Could Happen To The Ethereum Price Today?

Now that the Pectra upgrade has finished and the hype over the recent trade agreement is dying down, Ethereum could quickly lose steam.

There is concern that the coin rose too quickly all at once and could crash as a result. Bitcoin price also did really well recently and gained more than 4% over a 24-hour period. But BTC was not boosted by an upgrade going well, so even if it loses momentum, it likely will not come down as hard as Ethereum could.

Ethereum’s recent bullish movement has been driven by real market demand for the coin, which is very promising. This means there is less chance that a major drop will happen, but the coin is likely to correct to some degree. The concern is how much correction will take place.

Trade volume for the coin is still high, up by 5% over the last 24 hours, but not tremendously high. There are indications that the coin is slowing down and could stagnate or drop very soon- as early as the end of the day.

However, because the trade agreement frees up ETH and the wider cryptocurrency market as well as the stock market, there should be a strong amount of market support for the coin. Even if Ethereum does fall quickly and steeply, we expect that it will bounce back almost to its current level shortly thereafter.