Ethereum Plummets 22%, ETH’s Path To $1.2K?
The prices of Ethereum and the other cryptocurrencies are lowering their price. With a 22% drop from this week’s highs, pushing ETH over the edge, the odds of the coin falling to record new 2022 lows remain high.
On the daily chart, the bearish candle on November 8 will define the short-term trajectory.
The bar is wide and has high trading volumes signaling the involvement of traders, mostly sellers, and fear stemming from the fundamental factors of the last 48 hours.
At this rate, there’s a real chance that ETH drops below Q3 2022 lowsbut also from 2022 lows, piling more pressure on bulls and squeezing liquidity out of an already quite fragile market.
The FTX-Binance Chess Game
The chaos around FTX and Binance is scaring the crypto markets.
Binance has said that it will provide liquidity to FTX Global, injecting the necessary funds so that the exchange can resume operations. The concession of FTX means that Binance has taken control of the exchange and has only increased its strength.
However, because FTX quickly agreed to a deal, some investors are skeptical, pointing the finger at Alameda. The investment wing of FTX owns several assets, and the coins are shedding across the board.
Many speculate that Alameda is in the red, and that the FTT, a token to subsidize trading fees on FTX, could end up falling to zero. This, in turn, could affect the broader markets, and ETH will be no exception.
Ethereum Price Analysis
Ethereum is falling rapidly, slipping 22 percent from this week’s highs and below the mid-BB.
With ETH prices reversing last week’s gains and trading new lows in November, the bearish engulfing bar on Nov 8 could shape the short-term formation.
Therefore, as long as prices are inside the bear bar, each high below $1.5k may present an opportunity for sellers to unload, targeting yesterday’s lows and Q3 2022 lows around 1.2k dollars.
Additional losses below the September lows may trigger a sell off, pushing ETH to the 78.6 percent Fibonacci retracement level of the June to August 2022 range at roughly $1.1k. In that case, ETH could drop towards $940, the June 2022 low, on the continuation of sellers from H1 2022.
Chart courtesy of Trading View
Disclaimer: The opinions expressed are not investment advice. Do your research.
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