$ETH Cointelegraph experts told about Ethereum's drawdown

On Monday, May 27, the main altcoin made a determined attempt to break through the $3934 area. Alas, but buyers failed to realize its potential. Then a deep correction started, in which ether is still in. Cointelegraph representatives commented on this situation and told about the reasons why the bearish trend is developing.

They believe that the key factor was a sharp rise in the yield of U.S. Treasury bonds. This provoked an increase in demand from investors and shifted their attention to the traditional asset. Also, traders began to doubt that the Federal System will be ready to soften monetary policy in the near future. This point of view is confirmed by recently published minutes of the last Fed meeting. From them it follows that many officials took a rather radical position. Of course, they noted that inflation in the U.S. has shown a clear decline in recent months. But, according to the officials, there is no reason to say that it is ready to slow down to the target 2% yet.

In parallel, sell-offs by large investors are putting significant pressure on price dynamics. Onchain metrics show that holders with balances between 1 and 10 million ETH have gotten rid of 1% of their holdings over the past 24 hours. It is noteworthy that investors with assets from 100 thousand to 1 million ETH are also massively increasing their supply. If we evaluate the market situation from a technical point of view, global Ethereum is in a bullish trend.

Specialists note the area of $3600 as a key support level. In their opinion, now market participants need to closely monitor the price reaction to this support zone. If quotes break below this mark, a deep drawdown up to the border of $3300 may start.#ETH🔥🔥🔥🔥 $ETH #ETHUSDT