Ethereum (ETH) emerged as the best cryptocurrency last week, with an increase of 10 percent. Moreover, it was said that the cryptocurrency’s recently created upward trend line should boost ETH higher if market conditions are truly optimistic.
ETH price is showing early signs of weakness as the decentralized smart contract token fails to rise above the sharp trend line. On Tuesday, a new negative thesis predicted that the $1,122 level would be breached with targets near $1,000.
The crypto price analysis on Wednesday was bleak, as market watchers noted a sharp drop in the past 24 hours and a clear break below the $1,100 support level. Therefore, ETH is likely to decline further and attempt to break the next weak support level around $1,050.
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Ethereum price reached $1,070, down almost 6% in the last 7 days
As of this writing, ETH is trading at $1,070, down 5.9 percent from last week, according to data released by Coingecko on Wednesday.
In the past 24 hours, the market has mostly been trading in the red with continued selling around the world. Bitcoin (BTC), the leading cryptocurrency, fell 4.27 percent. Meanwhile, the majority of the leading cryptocurrencies have seen similar results.
If the favorable scenario materializes, the bulls will break above the $1200 moving average and then recover above the $1300 resistance area and even $1500 before consolidating above $1700 and breaching the white trend line.
Moreover, given the macroeconomic uncertainty caused by the potential for a downturn and lack of liquidity, the target appears to be challenging.
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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
Centralized exchange FTX may be one of the biggest contributors to selling pressure on ETH and other cryptocurrencies by funding traders willing to convert their coins for high annual returns.
Such a plan puts enormous pressure on a supplier that is already struggling to maintain a level of support above the local average.
Meanwhile, cryptocurrency traders continue to await the release of the June Consumer Price Index, the gauge of US inflation, on Wednesday for hints about how active the Federal Reserve should be to ease the rate of rising consumer prices.
Ethereum price reached a massive swing high last week at $1,275. After a brief consolidation above $1200, ETH quickly reversed and started to move lower.
Immediately after a sharp breakout below the $1,175 support level, ETH dropped rapidly by midday on Tuesday. The close of the trading session was marked by a clear breakout of the $1,100 support level and the subsequent drop below $1,050.
Featured image from Green Living, chart from TradingView.com