Ethereum price prediction: Drop to $2,500 can’t be ruled out

[Pagla]

Ethereum (ETH/USD) suffered a harsh reversal in the overnight session as worries about regulations continued. The pair declined to a multi-month low of $2,860, which was about $1,000 below its all-time high.

Regulatory concerns
Ethereum and other cryptocurrencies crashed sharply in the overnight session. Bitcoin fell below $40,000 while the total market value of all cryptocurrencies fell below $2 trillion.

The decline happened as investors remained concerned about regulations of the sector. On Thursday, it was revealed that a Russian regulator had suggested that the country should ban cryptocurrencies. If this happens, Russia will join the likes of China which have already banned the coin.

There were also regulatory concerns in the United States after the Federal Reserve released a paper on Central Bank Digital Currency (CBDC). The bank’s officials have been torn about the viability of such a project.

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