Ethereum breaks below $1,600 as crypto mirror falling stocks

Ethereum (ETH) prices fell along with other cryptocurrencies and stocks after hawkish remarks by US Federal Reserve Chairman Jerome Powell.

By the end of the stock market on Friday, Ethereum was down 9%, near $1,555 per token, with the bears trying to break through toward $1,500. This drop came after he saw downward pressure after the ETH/USD pair broke below his $1,600 level in the late afternoon. This reflected Bitcoin (BTC) breaking below his $21,000 level and reaching an intraday low of $20,620.

Ethereum and Merge Factor

Friday’s Ethereum loss helped propel the altcoin to lows last seen in late July when ETH/USD traded in the $1,400 range. However, the current weakness comes at a time when the majority of smart contract platforms are positive.

Ethereum developers confirmed a merge this week. long-awaited Network events take place in mid-September.

the number of $ETH Deposits into the Beacon chain contract are currently stable, but with a macro minimum of 220 deposits per day.

This may indicate that investors have reached a stable holding pattern as they await a successful merger, scheduled for mid-September.

Live chart: https://t.co/uVDy2zfZBr pic.twitter.com/rmXoSKAqr0

Glassnode (@glassnode) August 23, 2022

ETH deposits on the beacon chain are slowing, but the community remains optimistic about the potential of the Ethereum blockchain and thus the price of Ether.

But despite many analysts seeing the “merger” as a catalyst that could trigger the next market cycle, there are voices saying the market has already set prices on this event.

Wall Street plummets on Fed chair’s remarks

Stocks fell even after Powell said at a Jackson Hole symposium that central banks have work to do and will keep it.until completed

He said at a forum that the Fed needs to maintain a proactive approach if it is to succeed in restoring price stability. I said no.

His remarks seem to have taken the market by surprise, with the S&P 500 down more than 3%, the Nasdaq Composite down nearly 4% and the Dow Jones Industrial Average down more than 1,000 points.