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

The price of Ethereum (ETH) fell alongside other cryptocurrencies and stocks following hawkish remarks from US Federal Reserve Chairman Jerome Powell.

At the close of trading on Friday, Ethereum was down 9% near $1,555 per token, with bears looking to approach $1,500. The decline came after late afternoon downward pressure saw the ETH/USD pair drop below $1,600 – with losses reflecting Bitcoin (BTC), which fell below 21 $000 to touch intraday lows of $20,620.

Ethereum and the merge 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. But while it remains well above its mid-June low, the current weakness comes amid a largely positive period for the smart contracts platform.

Ethereum developers this week confirmed the “merger”, a highly anticipated event for the network, will take place in mid-September.

While ETH deposits in the Beacon Chain have slowed, the community is optimistic about the possibilities for the Ethereum blockchain, and therefore for the price of Ether.

But even as many analysts see the “meltdown” as the catalyst that could trigger the next market cycle, there are calls the market has already priced into the event.

Wall Street plummets over Fed Chairman’s remarks

Stocks also fell after Powell told the Jackson Hole symposium that the central bank had a job to do and would continue to do so.”until it’s done.”

He told the forum that the Fed must maintain its aggressive approach if it is to succeed in restoring price stability. The Fed Chairman noted that it was not yet time for the central bank to adopt 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 Average falling more than 1,000 points.