Ethereum (ETH) is experiencing a significant price correction amidst a broader cryptocurrency market downturn. According to CoinGecko data, ETH has declined by 2.9% in the last 24 hours, bringing its weekly loss to 9.1%. The current price is holding near $2,100, but prediction markets indicate a 56% chance it will fall below $2,000 by month’s end, influenced by macroeconomic pressures and reduced expectations for Federal Reserve interest rate cuts.
Ethereum’s price has declined alongside a wider market dip, with data showing the asset is down 10.4% over two weeks and 11.8% over the past month. The second-largest cryptocurrency last traded below $2,000 in late March, following a period of gradual recovery that has now been interrupted.
Analysts point to higher-than-anticipated inflation figures as a primary factor, reducing the likelihood of near-term interest rate cuts from the Federal Reserve. Many had hoped new Federal Reserve Chair Kevin Warsh would reduce rates, as requested by President Trump, but rates may now remain unchanged or even increase. Rising oil prices and high bond yields have also contributed to inflationary pressures indirectly impacting the crypto market.
Market observers note that the upcoming vote on the CLARITY Act could influence investor sentiment. A positive outcome might provide support, while a negative result could lead to further erosion of confidence.
Prediction markets are reflecting this bearish outlook, with a tweet from Coin Bureau stating, “ODDS OF ETHEREUM CRASHING BELOW $2,000 JUST FLIPPED MAJORITY”. The post further noted traders are betting there is a 56% chance ETH falls below that level before the end of May.
