Choppy Trading in Ethereum – What’s Happening?
Arslan Butt • 1 min read
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.