CAN $ETH RECOVER? 🤔 Here The Answer 👇
Recently, ETH's price dropped to $3,300 erasing recent gains amid a 5% Bitcoin decline. This fall led to $35 million in liquidations of leveraged ETH longs. But what factors actually contributed on this decline? Economic factors like U.S dollar's rally to a two year high and concerns about Federal Reserve policies mainly contributed! In fact, investors shifted to cash amid heightened recession fears (discrepancies in job data). In simple words, when investors move to cash due to recession fears, risky assets like stocks and cryptos lose value.
However, if we watch at ETH on chain metrics, its total value locked (TVL) is about 20M ETH. This means that the investors confidence in decentralized applications (DApps) is still very high. So, will it recover? In my opinion, while global macroeconomic challenges persist, bullish derivatives data and robust network activity might set ETH to recover and revisit 4k
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