Choppy Trading in Ethereum – What’s Happening?

Ethereum appears to be regaining its strength after what appears to have been a correction that drove it down to the $1,300 level after

Arslan Butt•Friday, February 26, 2021•1 min read

Choppy Trading in Ethereum - What's Happening?

Ethereum appears to be regaining its strength after what appears to have been a correction that drove it down to the $1,300 level after crossing $2,000 earlier this week amid choppy trading. At the time of writing, ETH is trading around $1,440.

The doors are open for greater volatility as the weekend approaches, which could send prices lower in the near-term, as we have seen several times in the past. Amid thin volumes, cryptocurrencies tend to ease lower in weekend trading before getting more active during weekdays when conventional financial markets also operate.

Earlier this week, Bitcoin lost some of its steam and slid lower, taking other cryptocurrencies, Ethereum included, lower as a result. The crypto market is experiencing sell-offs as the overall sentiment in financial markets turns cautious over expectations of prolonged monetary easing and stimulus driving up possible reflation and sending bond yields, especially US Treasury yields, higher.

As the price of Ethereum crashed, Binance had even suspended withdrawals of ETH and Ethereum-based tokens for some time, claiming that it drove up network congestion. However, strong backlash from the community forced the world’s largest crypto exchange to overturn its decision quickly.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.