Ethereum Breaks Below $1,600 as Crypto Mirror Stocks Fall

The value of Ethereum (ETH) fell alongside different cryptocurrencies and stocks following hawkish remarks by US Federal Reserve Chairman Jerome Powell.

As markets closed on Friday, Ethereum was down 9%, near $1,555 per token, with bears looking to break towards $1,500. The drop came after late afternoon pullback tension saw the ETH/USD pair dip below $1,600 – with losses reflecting Bitcoin (BTC), which rose above $21,000 to touch the lows. intraday lows of $20,620.

Ethereum and the merger problem

Ethereum’s losses on Friday helped push the altcoin to its lowest level seen in late July, when ETH/USD traded in the $1,400 range. However, while it remains well above its mid-June sellout floor, the current low comes amid a largely constructive period for the sensitive contracts platform.

The builders of Ethereum this week confirmed the “merger”, a highly anticipated opportunity for the community, will take place in mid-September.

As ETH deposits in the Beacon Chain have slowed, the quarter is optimistic about the prospects of the Ethereum blockchain, and therefore the value of Ether.

But along with many analysts seeing the “meltdown” as the catalyst that would trigger the next market cycle, there are calls that the market has already priced in on occasion.

Wall Road plummets over Fed Chairman’s remarks

Stocks also fell after Powell mentioned at the Jackson Gap symposium that the central bank had a job to do and would stick to it.”until it is done.”

He informed the forum that the Fed wanted to hone its aggressive approach if it were to succeed in restoring value stability. The Fed Chairman noted that it was no longer time for the central financial institution to undertake an easing policy.

His remarks appear to have spooked the markets, with the S&P 500 falling more than 3%, the Nasdaq Composite falling nearly 4% and the Dow Jones Industrial Common falling more than 1,000 points.