Ether Price Rebounds, Then Corrects After Reaching Yearly High

Sentiment: Neutral

In the volatile world of cryptocurrencies, Ethereum (ETH) experienced a whirlwind journey from soaring highs to a significant price correction. Between March 3rd and 13th, ETH surged by an impressive 20%, nearly touching $4,100, only to face a swift rejection leading to a 20% drop, testing support at $3,200 by March 19th. This article delves into the factors behind this rollercoaster ride, analyzing market dynamics, network upgrades, and investor sentiment.

While Ethereum demonstrated strength in its network upgrades, it underperformed compared to other cryptocurrencies during the recent market downturn. Despite the total cryptocurrency market capitalization peaking at $2.77 trillion on March 14th, it witnessed a sharp decline to $2.35 trillion, with Bitcoin (BTC) experiencing a 12% drop. Interestingly, Solana (SOL) defied odds by rising 21%, despite facing network challenges due to increased memecoin activity.

Ethereum's Network Upgrade

March 13th marked a significant milestone for Ethereum with a major network upgrade coinciding with its price peak. This upgrade aimed to alleviate concerns over high transaction fees by implementing improvements in layer-2 scaling solutions and data handling. Consequently, Ethereum witnessed a surge in transaction volume on layer-2 solutions, averaging an impressive 122 transactions per second over the past two days.

Persistent Challenges

Despite notable advancements, Ethereum continues to grapple with high gas fees on its base layer, averaging around $12 on March 18th. This ongoing issue has fueled interest in alternative platforms like Solana and Avalanche, offering lower transaction costs and faster processing times.

The sentiment surrounding Ethereum remains cautiously optimistic amidst the recent price correction. The drop in the funding rate for ETH perpetual contracts suggests a balanced market sentiment, with buyers and sellers reaching equilibrium. Moreover, the substantial premium on Ether futures contracts, currently standing at 22%, indicates enduring confidence in the potential approval of Ethereum ETFs despite the market turbulence.


In conclusion, Ethereum's recent price volatility underscores the inherent unpredictability of the cryptocurrency market. While challenges persist, such as high gas fees and market fluctuations, Ethereum's ongoing network upgrades and investor optimism signal resilience and potential for future growth in the ever-evolving landscape of digital assets.

About the Author

Crypto Enthusiast for over 6 years now. Working full time in DeFi since 2021.

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