The negative market mood also added to the pressure on the second-largest cryptocurrency in the world. Bitcoin was also under pressure from the news that Pakistan was calling for a ban on cryptocurrencies. Pakistan was the third-largest country in crypto adoption in October 2021. The concerns related to the outflow of foreign reserves from the country prompted its central bank to call for a ban on digital assets. Furthermore, the increasing rate of cybercrimes and crypto frauds also added to the concerns and dragged the whole market mood down , which weighed on ETH/USD.

Meanwhile, a DeFi user has filed a lawsuit against an Ethereum DeFi App, PoolTogether, claiming that they enabled an unauthorized lottery scheme. He deposited about $10 in a pool of funds governed by a smart contract. PoolTogether was a no-loss lottery that enabled users to stake their tokens into a savings pool for a chance to win a weekly prize. The outcome of the case could set a precedent towards establishing a regulatory framework in the DeFi space.

Ethereum made yet another effort to break through the $3,400 resistance level, but it failed to gather traction and corrected downward from the high of $3,391. There was a break below the $3,320 and $3,300 support levels. The price of Ether has even fallen beneath $3,300, and the 100 hourly simple moving average. Furthermore, on the ETH/USD hourly chart, there was a breach below a significant ascending channel, with support near $3,320.

The price has produced a low near $3,238, and it is currently correcting higher. There has been a break over the 23.6 percent Fib retracement level from the latest slide from the upswing to$3,391, to the drop to $3,238.