Ethereum (ETH) Price Risks Falling To $1400 – Crypto News – Crypto News
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Ethereum (ETH) Price Risks Falling To $1400 – Crypto News

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2 years ago

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Ethereum (ETH) price fell over 7% in the last 24 hours due to the US SEC’s regulatory action against crypto exchange Kraken to start a crackdown on crypto stacking in the US

Ethereum price is currently trading near the support level of $1,520, almost close to the psychological support level of $1,500. If the ETH price fails to hold the level and breaks below the support, then a fall to $1,400 is the most likely scenario.

Notably, the Ethereum price trend is forming a bearish divergence with RSI, Thus, the correction will continue in the next week. The crypto market is undergoing a correction after a magical recovery in January.

Ethereum price. Source: TradingView

However, cup and handle — a bullish pattern forming on the daily time frame indicates a move above $1,650. Meanwhile, Ethereum has completed a “golden cross” pattern as 50-MA crossover 200-MA. While there are many conditions on the technical front, the trend is overall bearish.

Traders need to keep an eye on the $1500 psychological level to make their next move, as it is the inflection point for the Ethereum price. A move below $1500 will invalidate the bullish thesis and a move towards $1400 can be seen.

Ethereum (ETH) The price needs to recover support at $1,550 but even so, it faces a massive supply area near $1,599. On-chain data from IntoTheBlock shows 2.43 million addresses bought 9.19 million eth between $1,581 and $1,623. This region is likely to keep eth suppressed over the weekend.

ether price
Ethereum price. Source: IntoTheBlock

Ethereum Price Under Pressure

Ethereum price is under pressure due to the overall negative sentiment in the market. A massive panic selloff is witnessed across the crypto market in the last few days as US Federal Reserve officials consider more rate hikes to curb inflation.

Furthermore, Operation Choke Point-type action is likely brewing for a coordinated crackdown against the crypto industry by regulators. Crypto businesses might end up completely unbanked, stablecoins might be stranded and unable to manage flows in and out of crypto, and exchanges might be shut off from the banking system entirely.

Also read, US SEC’s Gary Gensler: This Is Only Way Crypto Companies Will Survive

Varinder is a Technical Writer and Editor, Technology Enthusiast, and Analytical Thinker. Fascinated by Disruptive Technologies, he has shared his knowledge about Blockchain, Cryptocurrencies, Artificial Intelligence, and the Internet of Things. He has been associated with the blockchain and cryptocurrency industry for a substantial period and is currently covering all the latest updates and developments in the crypto industry.

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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