Why did Ether (ETH) drop? What are the expectations?

Question

Nansen analyst Aurelie Barthere commented on why Ether (ETH) fell and interpreted the market's next cycle.

Since the launch of spot ETFs, the price of ETH has dropped by more than 26%. ETH ETFs have recorded a net outflow of $420.5 million since launch.

Barthere, who stated that the decline in ETH is not due to spot Ethereum ETFs, told Cointelegraph the following:

"BTC has fallen by 14% since July 23rd. What I see is a lack of risk appetite that is not related to the ETF launch."

Ether (ETH) is under significant pressure

Nansen's lead research analyst, Aurelie Barthere, commented on the recent developments in the price of Ether (ETH). Barthere, who stated that the recent sales were not unique to cryptocurrency, said:

We know that the first wave of sales in March caused losses among traders interested in crypto. Then, a second sale correlated with stocks occurred in July and August. This sale took place in an environment where growth is still strong but slowing in the US and traditional risk assets such as US stocks were squeezed.

The stock market crisis triggered the decline in cryptocurrencies, which coincided with Japan raising interest rates.

Cointelegraph, which compiles on-chain data, stated that the top five market makers have sold 130,000 ETH since August 3, and after these sales, ETH fell below $2,200.

The stagnation in the cryptocurrency market is seen as a temporary correction or the end of the current bull market. Crypto analyst Barthere said that the market's direction will depend on the Fed's upcoming interest rate policy decisions.

Barthere, expressing his expectations, said the following:

“In my opinion, it is still uncertain whether we have experienced only a consolidation pause or if crypto prices have peaked. If the Fed pauses while growth continues, the bull market in crypto and stocks will likely continue. If there is a sharper slowdown in growth, there will be less upward movement for risk assets.”

This article does not contain investment advice or recommendation. Every investment and trading operation involves risks, and readers should conduct their own research when making decisions.