Early this morning, the price of Ethereum (ETH) suddenly fell to $3613, attracting widespread attention from the market. This significant price drop was mainly influenced by three factors:

Firstly, the Bank of Japan unexpectedly announced an interest rate hike, a decision that triggered panic in the global financial markets, causing investors to flee high-risk assets, and the cryptocurrency market naturally was no exception.

Secondly, the Ethereum network is facing the challenge of the increasing popularity of Layer 2 solutions. As a large number of transactions move to Layer 2 networks, the transaction fee income of the Ethereum mainnet has significantly decreased, which has shaken investors' confidence to a certain extent.

Finally, some long-term holders of ETH suddenly chose to sell, causing the price to fall below multiple technical support levels in succession, triggering panic selling in the market.

The combination of these three factors, along with the current market sentiment being relatively weak, ultimately led to the drastic fluctuations in the ETH price.

In the face of such a volatile market, investors should remain calm. Buying at a high often carries significant risks, as a correction is likely to occur in the short term, and in such market conditions, price fluctuations can easily reach hundreds of points.

For experienced traders, it may be worth considering going long when prices fall to lows and placing short orders at highs. However, for investors who are uncertain, maintaining a wait-and-see attitude may be a wiser choice.

In addition to following the trend of ETH, investors can also closely watch several other noteworthy projects, such as OM, SUI, SOL, FUN, and BTC.

In this uncertain market environment, it is crucial to remain rational and cautious. Every investment decision should be based on thorough research and risk assessment.