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.
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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.
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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
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