Over the weekend, a number of negative headlines pushed the digital currency to a new low.
Around 10:50 a.m., the price of the virtual currency skyrocketed to $21,617.70. According to coin metrics. It dropped as low as $17,959.05 over the weekend. It fell to its lowest point since December 2020.
ether went up to $1,185.17
The moves come on the heels of bearish headlines for the industry that started with macroeconomic forces. The Federal Reserve raised its benchmark interest rate by three-quarters of a percentage point last week and wholesale prices rose at a near record annual rate.
The companies that make cryptocurrencies are laying off workers. Users are worried about insolvency because of the high yields for depositing their digital coins.
Like in the stock market, investors are treading lightly around bear market bounces with some expecting cryptocurrencies to fall even further before seeing a rebound.
According to Yuya Hasegawa, an analyst at Bitbank, the weekend dip was not deep enough. There has not been a clear sign of inflation coming down and the Fed may still drive the economy into recession by raising rates too aggressively.
The analyst at Global Block said that there is resistance at $21,300. He said it could reach the next target of $23,500 if it succeeds in overcoming that. Short sellers are forced to purchase more of the asset to cover their positions when the price of a heavily shorted asset increases.
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