Ethereum breaks below $1,600 as crypto mirror falling stocks

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The price of Ethereum (ETH) fell along with other cryptocurrencies and equities following a scathing remark from US Federal Reserve Chairman Jerome Powell.

By the time the stock markets closed on Friday, Ethereum was down 9%, near $1,555 per coin and the bears were looking to break to $1,500. The ETH/USD pair fell below $1,600 after a fall late afternoon – a loss mirroring bitcoin (BTC), which broke below $21,000 to touch an intraday low of $20,620.

Ethereum and Merge Factor

Ethereum’s losses on Friday helped push the altcoin down last seen in late July, when ETH/USD traded in the $1,400 range. But as long as it remains well above the mid-June sell-off floor, the current weakness comes amid a largely positive period for the smart contract platform.

Ethereum Developers Confirmed the “Merge” This Week, a highly anticipated The event for the network will take place in mid-September.

While ETH deposits in the Beacon chain have slowed, the community is upbeat about the potential of the Ethereum blockchain, and consequently for the price of Ether.

But even as many analysts view the “merge” as a catalyst that could trigger the next market cycle, there are calls that the market has already priced the event.

Wall Street collapses on Fed chair’s remarks

The stock also fell after Powell said at the Jackson Hole symposium that the central bank has a job to do and they will keep it.till completion,

He told the forum that the Fed needs to maintain its aggressive approach if the Fed is to be successful in restoring price stability. The Fed chair said that now is not the time for the central bank to adopt a loose policy.

His remarks caused a stir in the market, with the S&P 500 sliding more than 3%, the Nasdaq Composite down nearly 4% and the Dow Jones Industrial Average down more than 1,000 points.

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