The price of Ethereum (ETH) fell against Bitcoin (BTC) as the cryptocurrency market experienced a sharp decline in the past 24 hours.
ETH fell over 8% as it traded at close to around $1,300.
According to Kevin Svenson, analyst and crypto influencer, ETH fails to hold on to the critical support level if it continues to fall to the $1,000 price level.
Last week the implementation of Ethereum Merge was successful. Experts believe that the achievement of the process is something extraordinary, but the price of ETH dropped after the merger.
This is because many experts believe that the launch of the merger is actually a time for investors to sell ETH because they consider the merger to be long-term.
It was also emphasized that the merger took place during the worst macroeconomic conditions following the reading of the US consumer price index data in August highlighting worse than expected inflation.
In fact, Elon Musk, the CEO of Tesla is convinced that another big hike from the Fed will lead to an economic recession including the World Bank believes the market will face a recession next year.
For the record, the price of ETH and other cryptocurrencies will depend on the interest rate hike on September 21st, even if the market could bounce back if the FOMC raises another 75 basis points.
Even so, if the Fed continues its hawkish 100 basis point hike, it will likely lead to a strong price correction.
