Ethereum (ETH) emerged as the best cryptocurrency in the past week, up around 10%.
In addition, the bullish trend line, which was created recently for Ethereum, is bullish as it should boost ETH higher if market conditions are favourable.
ETH price showed early signs of weakness, as it failed to rise above the descending trend line.
Negative expectations on Tuesday indicated that the $1,122 level will be breached with bearish targets near $1,000.
The crypto price analysis on Wednesday is also grim, as market watchers have noticed a sharp drop in the past 24 hours and a clear break below the $1,100 support level, so Ethereum is likely to drop further and attempt to break through the next weak support level around $1,050.
Ethereum is down about 6% in the last 7 days
ETH is trading at $1,070 (as of this writing), a decrease of 5.9% over the past 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.
If the desired scenario materializes, the bulls will break above the $1200 EMA and then recover above the $1300-1500 resistance area before holding above $1700 and breaking the white trend line.
The objective appears to be challenging, given the macroeconomic uncertainty caused by the possibility of a downturn and lack of liquidity.
Notably, the price of Ethereum reached its highest level last week at $1,275. After a short consolidation above $1200, it quickly reversed and started to move lower. Once there was a downside breakout below the $1,175 support level, ETH price 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 dip below $1,050.
FTX Pressure – CPI Outcome – Fed Actions
The centralized FTX platform may be one of the biggest contributors to selling pressure on ETH and other cryptocurrencies by funding traders willing to lend their coins for high annual returns.
Such a plan puts enormous pressure on the currency, which 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 inflation, for hints about the actions, which the Federal Reserve should take to mitigate the rising rate of inflation.
Source: NEWSBTC