The last 24 hours were marked with a lot of drama for Ether, especially as the premier altcoin was beginning to showcase signs of another breakout after scaling up to the $1,625 mark. However, after hovering around the $1,600 region for around 12 hours running, the currency started to slide rapidly, dropping by a staggering 7% within no time. As a result, the second-largest cryptocurrency by total market capitalization is now sitting at $1,480.
This latest downward trend comes a few days after the chairman of the U.S. Federal Reserve Chair Jerome Powell acknowledged he "would be concerned" by tightening financial conditions, especially as the American government's bond yields have been putting an increasing amount of pressure on borrowing costs.
Commenting on the subject, CEO of cryptocurrency exchange OKEx, Jay Hao, pointed out to Finder that in the wake of US Treasury yields beginning to rise — with 10-year yield levels rising to their highest since February 2020 — most crypto assets including Ethereum have taken a hit and may continue to be at the receiving end of some solid bearish momentum, adding:
"We're also approaching a year since the March 12 selloff and a month that is traditionally challenging for cryptocurrencies and other risk assets. So, I believe that the near-term outlook for Ethereum is neutral. There are some significant headwinds but if ETH bulls can maintain this newfound momentum, we could see it testing the $2K level once again."