The price of Ethereum is currently hovering around $3,500 (£2,500) after a mixed few days.
The world’s second largest cryptocurrency started the month valued under $3,000 (£2,200), but reached over $3,600 (£2,600) last week before dipping slightly.
It comes as Bitcoin rises over $57,000 (£42,000), reaching a five-month high.
However, the market is also preparing for a potential crackdown from United States President Joe Biden.
US crypto crackdown
Federal Reserve chair Jerome Powell has said there are no plans to ban cryptocurrencies in the US.
However, the Biden administration is reportedly considering a regulatory crackdown, giving the Government more control over the market.
President Biden said in a statement: “Cyber threats can affect every American, every business regardless of size, and every community.
“That’s why my administration is marshalling a whole-of-nation effort to confront cyber threats.”
He added: “This month, the United States will bring together 30 countries to accelerate our cooperation in combatting cybercrime, improving law enforcement collaboration, stemming the illicit use of cryptocurrency, and engaging on these issues diplomatically.”
Last month China extended its ban on mining coins to all cryptocurrency trading, which briefly crashed prices, though they did not take long to recover strongly.
What could happen next for Ethereum?
Cryptocurrencies are notoriously volatile. They can both gain and lose large amounts of value in a very short space of time.
This makes it had to predict what will happen next, and also makes them risky investments. You should only ever put in what you can afford to lose.
Some bulls are predicting Ethereum could reach an all-time high next week, rising back over $4,000 (£2,900).
But any US crackdown could have a negative effect on not only the price of Ethereum, but other major coins.
The Financial Conduct Authority (FCA) warned in January: “Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money.
“If consumers invest in these types of product, they should be prepared to lose all their money.”
Susannah Streeter, senior investment and markets analyst, Hargreaves Lansdown previously explained the risks to i.
She said: “On top of being extremely volatile, most cryptocurrencies are unregulated, which not only adds another layer of uncertainty but also means that investors have little or no protection against fraud.”
