Ethereum market price has been volatile in recent months due to investors being concerned about several factors. The ETH token is trading at $1,083, which is significantly lower than its all-time high of near $5,000. The coin’s market cap has dropped to about $131 billion. At its peak, Ethereum was valued at over $600 billion.

DeFi, NFT, Gaming growth concerns

Ethereum prices have crashed due to investors continuing to worry about rising inflation and strong US dollars. On Wednesday, data showed that America’s inflation rose to 9.1% in June. This was the biggest increase in more than 41 years.

Inflation can have an impact on Ethereum prices and other cryptocurrency prices. One, high inflation forces the Federal Reserve into a very hawkish policy. This policy tends, in return, to push the US dollar’s value much higher.

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Indeed, the US dollar index has surged to $108, which is the highest level it has been since 2002. The US dollar’s strength usually causes a devaluation of financial assets priced in dollars. Unfortunately, Fed is expected to double down by implementing a 100 basis point rate hike later this month.

The ongoing performance of key sectors such as gaming, Decentralized Finance (DeFi) and Non-fungible Tokens (NFT) has caused the

Ethereum prices to plummet. In the past few months, the total value locked (TVL) in DeFi has crashed from over $250 billion to about $73 billion. In this period, the TVL in Ethereum has dropped to about $45 billion.

The same trend is happening in the gaming industry. The number of active players in an Ethereum platform like Axie Infinity has dropped to below 500k. Decentraland has also seen waning user growth.

Further the volume of non-fungible tokens traded daily has dropped significantly over the past few months.

Ethereum price prediction

The daily chart shows how the ETH price has fallen in the last few months. The coin recently formed a horizontal channel, which is shown in blue. This channel is reminiscent of a bearish flag pattern. It has also moved below the 25-day and 50-day moving averages.

Therefore, because of the bearish flag, there is a possibility that Ethereum will soon have a strong bearish breakout as sellers target the support at $888, which was the lowest level this year.