Ethereum (ETH) became the best performing cryptocurrency last week, rising 10%. Additionally, it was stated that the recently constructed ascending trendline for the cryptocurrency is expected to boost ETH if market conditions are truly bullish.
ETH price showed early signs of weakness as the decentralized smart contract token failed to break above the steep trendline. On Tuesday, a new negative thesis predicted that the $1,122 level would be breached with targets around $1,000.
Wednesday’s cryptocurrency price analysis is grim as market watchers noticed a sharp decline over the past 24 hours and a clear break below the $1,100 support. Therefore, ETH is likely to decline further and will attempt to breach the next weak support level around $1,050.
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Ethereum fixed at $1,070, down almost 6% in the last 7 days
As of this writing, ETH is trading at $1,070, a decline of 5.9% over the past week, according to data released by Coingecko on Wednesday.
Over the past 24 hours, the market has been trading mostly in the red as the global selloff continues. Bitcoin (BTC), the main cryptocurrency, fell 4.27%. Meanwhile, the majority of major cryptocurrencies have seen similar results.
If the favorable scenario materializes, the bulls will break above the $1,200 MA200 and then rally above the $1,300-$1,500 resistance zone before consolidating above $1,700 and crossing the white trendline.
Moreover, given the macroeconomic uncertainties caused by the prospect of a slowdown and the lack of liquidity, the objective seems difficult.
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ETH total market cap at $130 billion on the daily chart | Source: TradingView.com
FTX pressure, CPI result and Fed easing
The centralized FTX exchange could be one of the biggest contributors to the selling pressure on ETH and other cryptocurrencies by funding traders willing to convert their coins for a high annual return.
Such a plan places immense stress on a resource that is already struggling to maintain a level of support above the local average.
Meanwhile, crypto traders continue to wait for the release of the June Consumer Price Index, the US inflation gauge, on Wednesday for clues on activity the Federal Reserve is expected to show. to mitigate the rate of increase in consumer prices.
Ethereum price made a significant high last week at $1,275. After a brief consolidation above $1,200, ETH quickly reversed direction and began to decline.
Immediately after a severe breach below the $1,175 support, ETH fell rapidly on Tuesday midday. The conclusion of the trading session saw a sharp break of the $1,100 support and a subsequent drop below $1,050.
Featured image from Green Living, chart from TradingView.com