In the past week, ETH almost hit $3,200, but still failed to break its high of $3,280 in the previous 2 weeks. And from Thursday, ETH started to decline and early this morning, it traded below the $2,600 mark. But soon, it recovered above $2,700 mark due to the news that Biden agrees in principle to summit with Putin.

Now the price of Ethereum will largely depend on that of Bitcoin. And the Bitcoin price at the moment depends not so much on the sales caused by a possible Russian invasion of Ukraine, but on the US Federal Reserve. Tightening monetary policy and rising interest rates could hurt all risky assets, including cryptocurrencies.

Throughout the pandemic, cryptocurrency market has performed under the banner of an inflation protector. But as the anticipation that the US Central Bank will try to curb inflation, there is no doubt that it will impact BTC, ETH and other cryptocurrencies price trend.  Devaluation will be inevitable

Technical Analysis

On the daily chart, ETH price bounced off the 50-period moving average and returned to the downtrend. So far, the ultimate goal of the Bears is not completely clear, but there is no doubt that the market is once again in their power. MACD signal lines are trading below 0 and the negative histogram increases, while RSI is below 50, the bear is still stronger than the bull.

If ETH declines below $2,500 again, the next target will be the previous low of around $2,100.