Why is Ethereum (ETH) price down today?

Why is Ethereum (ETH) price down today?


Ether (ETH) price is down on Dec. 16 and the pre-FOMC rally to $1,350 was obliterated after Federal Reserve chair Jerome Powell issued hawkish statements following a 0.50% hike in interest rates.

Ether price was dealt another blow when Silvergate Capital Corporation decided to voluntarily liquidate Silvergate Bank. Silvergate Bank was one of the major crypto-friendly banks before a wave of companies dropped their services due to liquidity concerns.

The Ether sell-off also ignited a wave of Ethereum long liquidations, totaling $70 million from March 1-8.

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Ethereum long liquidations. Source: CryptoQuant

The rush of long Ether liquidations comes when Ethereum volume, which could offset liquidations, is down 90% since March 2020. 

While some analysts believe Ethereum still possesses multiple bullish catalysts that warrant investing in the asset, on-chain

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