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Ethereum (ETH/USD) great return dimmed the past three days with investors analysing this comeback. The coin fell to $3,258, lower than its highest this week of $3,483 and about 50% above its lowest in 2022.

Ethereum recovery fades

Like other altcoins, Ethereum has risen over the past few days as the risk-on sentiment domineered.

In a few weeks, the price of Ethereum rose from $2,154 to $3,400. This action is due to investors being open to risky assets regardless of the hawkish Fed.

This performance indicated the behaviour of other assets like stocks. Stocks have made a comeback in the past few weeks, with the tech-heavy Nasdaq 100 index topping. Cryptocurrencies and American indices behave similarly. 

Ethereum’s retreat is also due to the current Axie Infinity hack that resulted in an over $600 million loss. Axie Infinity is a blockchain network created in Ethereum’s blockchain.

Hence, investors are worried about the large amounts of money currently backing the DEFI ecosystem. According to DeFi Llama, $220 billion in funds are at risk with limited policies governing the sector.

Ethereum price has retreated due to investors taking profits. Initially, huge parabolic rallies are mostly joined by a pullback.

April is significant for Ethereum due to developers indicating moving forward with upgrading. In March, they completed a merge between the old and new versions in the Kiln testnet. If it’s a success, the new version will move to the mainnet.

Ethereum price prediction

The daily chart shows that the ETH price has formed a break and retest pattern in the past few days. It is now trading at $3,254, which is an important level since it was its highest point on February 9th. The coin remains above the 25-day and 50-day moving averages while the Relative Strength Index has kept rising.

Therefore, the outlook for April is still bullish, with the next key level to watch being at $4,000. This view will become invalid if the price declines below $3000.

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