Ethereum dumps 22%, ETH’s Path to $1.2k?

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Ethereum and crypto prices are in the doldrums. With a 22% dump from this week’s highs, pushing ETH to the edge, the odds of the coin dropping to register new 2022 lows remain high.

From the daily chart, the November 8 bear candlestick will define the short-term trajectory

The bar is wide-ranging and has high trading volumes signaling trader participation, mostly sellers, and fear stemming from fundamental factors of the past 48 hours. 

At this pace, there is a real possibility of ETH dropping below Q3 2022 lows but also to 2022 lows, heaping more pressure on bulls and squeezing out liquidity from an already fragile market.

The FTX-Binance Chess Game

The chaos around FTX and Binance is spooking the crypto markets. 

Binance has said it will provide liquidity to FTX Global, injecting the funds necessary for the exchange to resume operations. FTX’s concession means Binance has taken control of the exchange and has only increased its strength.

However, because FTX agreed to a deal quickly, some investors are skeptical and pointing fingers at Alameda. The investment wing of FTX holds several assets, and coins are being dumped across the board. 

Many speculate that Alameda is deep in red, and FTT, a token for subsidizing trading fees in FTX, could eventually drop to zero. This, in turn, could impact the broader markets, and ETH won’t be an exception.

Ethereum Price Analysis

Ethereum is dumping fast, sliding 22 percent from this week’s highs and below the middle BB. 

Since ETH prices have reversed last week’s gains and are trending at new November lows, the bearish engulfing bar of November 8 could shape the short-term formation. 

Therefore, as long as prices are within the bear bar, every high below $1.5k may present an opportunity for sellers to unload, targeting yesterday’s lows and Q3 2022 lows at around $1.2k.

Further losses below 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 approximately $1.1k. In that case, ETH may drop towards $940, the June 2022 low, in continuation of sellers from H1 2022.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

If you found this article interesting, here you can find more Ethereum News.


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