The price of Ethereum has changed substantially in recent days in response to Russia’s invasion of Ukraine, causing major volatility in the cryptocurrency and stock markets.
On Wednesday, when Russian President Vladimir Putin launched soldiers into Ukraine, Ethereum immediately fell below $2,400. Since then, the cryptocurrency has fluctuated. By Monday morning, Ethereum had soared beyond $2,800, having hovered about $2,600 throughout the weekend. On Friday, it had hit $2,600. Bitcoin, like the dollar, has followed a similar path.
Increased inflationary pressures, the worst month for the stock market since March 2020, and signals that the Federal Reserve will begin hiking interest rates in March to combat inflation at its next meeting all contribute to the rise in Ethereum volatility. Government officials have shown interest in the possibility of creating a government-issued digital currency, as well as the likelihood of more crypto legislation. Recently, bitcoin’s price has followed a similar downward direction.
Ethereum’s price has fluctuated between $2,500 and $3,000 per token since the start of the week. The following chart illustrates how Ethereum’s current price compares to its prior daily high:
According to commentators, the cryptocurrency market is reflecting the violence’s rising unpredictability. Numerous additional variables, like the cryptocurrency market’s synchronization with the stock market, more public usage, and recent price slumps, are all thought to be contributing to the current state of cryptocurrency pricing.
Ethereum’s price has already had a difficult start to the year, dipping below $2,200 in January, the lowest level since July 2021.
Despite its recent fall, Ethereum remains a strong performer in the run-up to 2021. Ethereum reached a new all-time high of $4,850 on Nov. 10. The cryptocurrency maintained this level into December until reversing direction towards the month’s conclusion. Although Ethereum saw a late fall, it ended the year far higher than where it began: Ethereum’s price reached slightly over $1,000 in January 2021.