Ethereum (ETH) Continues To Lose Luster, Drops Below $1,100 Support

Christian Encila

2 years ago

2 mins read

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Ethereum (ETH) emerged as the best-performing cryptocurrency last week, with a 10 percent increase. Moreover, it was stated that the recently constructed ascending trendline for the cryptocurrency should boost ETH higher if market conditions were truly optimistic.

The ETH price exhibited early signs of weakness as the decentralized smart contract token failed to soar over the steep trendline. On Tuesday, a new negative thesis predicted that the $1,122 level will be breached with objectives in the vicinity 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. Therefore, ETH is likely to decline further and will attempt to breach the next weak support level around $1,050.

Image - Today's Crypto News

Ethereum Pegged At $1,070, Down Nearly 6% In Last 7 Days

As of this writing, ETH is trading at $1,070, a decrease of 5.9 percent over the past week, according to data released by Coingecko on Wednesday.

In the previous 24 hours, the market has traded predominantly in the red as the worldwide selloff continues. Bitcoin (BTC), the leading cryptocurrency, fell 4.27 percent. Meanwhile, the majority of the leading cryptocurrencies saw similar outcomes.

If the favorable scenario materializes, the bulls will break above the $1,200 MA200 and then recover above the $1,300-$1,500 resistance zone before consolidating above $1,700 and breaching the white trendline.

Furthermore, given the macroeconomic uncertainties caused by the prospect of a downturn and the lack of liquidity, the goal appears challenging.

ETH total market cap at $130 billion on the daily chart | 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.

Such a plan places immense stress on a resource that is already struggling to sustain a level of support above 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.

The price of Ethereum reached a significant swing high last week at $1,275. After a brief consolidation above $1,200, ETH swiftly reversed direction and began to move lower.

Immediately following a severe breach below $1,175 support, ETH dropped rapidly by Tuesday midday. The conclusion of the trading session was marked by a clear breach of the $1,100 support and a subsequent decline below $1,050.

Featured image from Green Living, chart from TradingView.com

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.