Ethereum (ETH) emerged as the best-performing cryptocurrency last week, with a 10 percent increase. Moreover, the newly constructed ascending trendline was mentioned to have the potential to boost ETH even higher if the market is truly positive.
Early signs of weakness were evident in the ETH price as the token decentralized smart contracts failed to rise above the trendline. A new negative thesis for Tuesday predicted that $1,122 would be broken with targets in the neighborhood of $1,000.
Wednesday’s cryptocurrency price analysis is bleak, as market observers have noticed a sharp decrease over the previous 24 hours and a clear breach below the $1,100 support. ETH’s price is expected to continue falling and may attempt to surpass the weakest support level at $1,050.
Image from Today's Crypto News
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Ethereum Down Almost 6% in 7 Days, Pegged at $1,070
According to Coingecko’s Wednesday data release, ETH traded at $1.070 on this writing. That is a drop of 5.9 per cent over the week.
In the previous 24 hours, the market has traded predominantly in the red as the worldwide selloff continues. Bitcoin (BTC), the most popular cryptocurrency, dropped 4.27 percent. The majority of other leading cryptocurrency saw the same results.
If favorable conditions prevail, bulls will breach the $1200 MA200, then break through the resistance zone between $1,300 and $1,500, before consolidating over $1,700, and breaking the white trendline.
Additionally, due to macroeconomic uncertainty caused by the possibility of a downturn, and the absence of liquidity, it seems difficult to achieve the goal.
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ETH Total Market Cap at $130Billion on Daily Chart -- Source: TradingView.com| Source: TradingView.com
FTX Pressure, CPI Result & Fed Easing
The centralized FTX exchange might be one of the biggest contributors of selling pressure on ETH and other cryptocurrencies by funding traders ready to convert their coins for a high annual yield.
A plan like this places enormous stress on resources that are already having trouble sustaining a higher level of support than the local average.
Meanwhile, crypto traders continue to await the release of June’s Consumer Price Index, the US inflation gauge, on Wednesday for hints on how active the Federal Reserve would need to be to ease the rate of consumer price increases.
Ethereum hit an important swing high at $1,275 last week. After a short consolidation at $1,200, ETH quickly reversed its direction and moved lower.
ETH plunged rapidly on Tuesday, midday, immediately after a serious breach below $11,175 support. After a breach at $1,100, the session ended with a sharp decline below $1.050.
Green Living featured image, Chart from TradingView.com