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The Ethereum price was in negative territory on Tuesday, handing back Monday’s gains. At the time of writing, Ether had slipped more than 1.62% to $3,109. However, the coin is trading more than 86% above its lowest point in July. Ether is the second-largest cryptocurrency by daily volume and market capitalization. Its total market capitalization is more than $364 billion.

Crypto Underperformance

Ethereum was not the only cryptocurrency in the red today. Other coins like Bitcoin, Dogecoin, Vechain, and Cardano also dived. BTC’s decline saw most of the digital currencies fall due to their correlation. Bitcoin price declined more than 1.46% on Tuesday after jumping 5.61% at the start of the week.

Most analysts have linked the sell-off in cryptocurrencies to the US Senate’s $1 trillion infrastructure bill. according to the Senate, the bipartisan bill seeks for increased cryptocurrency tax reporting to boost revenue. The Senate stated that the crackdown on cryptocurrency tax reporting would bring in an estimated $28 billion over the next decade.

The Senate rejected the compromise crypto tax amendment to the infrastructure bill. Initially, lawmakers proposed a provision that would impose stricter rules on how digital assets are taxed. However, Sens. Ron Wyden, D-Ore., Pat Toomey, R-Pa. and Cynthia Lummis, R-Wyo., introduced an amendment that overtly excludes miners and developers. Their amendment received strong support from the crypto community, unlike the Senate that rejected the proposal.

However, the Ethereum price is staged to rally in August amid the new upgrades. The successful “London hard fork” launch on Ethereum’s blockchain on Wednesday saw its price jump 8.60%. The upgrade will reduce the number of Ethers in circulation by introducing burns. This will also cut down on the number of Ether mined each day by a third increasing its value.

Ethereum Price Prediction

On the daily chart, the Ethereum price has been on an upward trend since mid-July. The stock has jumped more than 234% from its lowest point this year in January. ETH price has been consolidating above the $3,000 level for the past few days signaling an uptrend.

The stock is trading above the 50 and 100-day exponential moving averages. In the near term, the coin is likely to drop to the support at $2,937 before bouncing back. If this happens, the next target will be the resistance at $3,600.

ETH Price Chart

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