The recent bullish run of Ethereum has hit a pause, with prices dropping to lows of $2,080 on Monday. This is attributed in part to statements by US Federal Reserve officials regarding another rate hike in the upcoming May policy rate meeting. The withdrawal of Ethereum staking contracts have consistently exceeded deposits, potentially adding sell pressure to the asset. The successful Shanghai upgrade, which enabled withdrawals of staked ETH from the proof-of-staking chain, had propelled Ethereum to new yearly highs above $2,129. However, statements from Fed officials that hinted at another rate hike in May strengthened the dollar, which can have a negative impact on more risky assets such as cryptocurrencies and stocks. Another rate hike may make the dollar a more attractive investment, potentially diminishing the appeal of top cryptocurrencies like Ethereum to investors seeking stable yields. It remains to be seen whether Ethereum can regain its bullish momentum in the face of possible market headwinds.

(By Nivesh Rustgi)