Ethereum Price Faces Bearish Pressure
For many investors, the price of Ethereum (ETH) has taken a hit, dropping 9.7% in a week to $1,664. The market-wide sell-off, which also affected Bitcoin, caused ETH to fall from its support at $1,800. Traders quickly switched to short positions, resulting in many investors being liquidated. The presence of the 200-day Exponential Moving Average (EMA) at the anticipated support levels of $1,780 and $1,800 did little to stop the bears from pushing the price lower. The recent implosion of the FTX exchange further enhanced the bearish sentiments.
ETH Price On The Cusp Of Another Sell-Off
Since April, Ethereum has been in a consolidation phase, with resistance at $2,000 and support at $1,650. The recent losses have put ETH at a crossroads. If the support at $1,650 is broken, there could be another breakdown with a potential 17.76% drop to $1,560. On the other hand, if the support holds, it may encourage the bulls to push for a breakout above $2,000. The short-term outlook, indicated by the Moving Average Convergence Divergence (MACD) indicator and the Relative Strength Index (RSI), suggests a bearish trend with further downward movement.
Uncertainty About SEC’s ETF Approval Dampens Crypto Markets
Investors are hesitant to seek more exposure to crypto products due to uncertainty surrounding the approval of a US spot-based ETF by the SEC. CoinShares’ report shows significant outflows in digital asset investment products, possibly due to the market-wide sell-off and concerns about the SEC’s decision. Former SEC attorney, John Reed, believes the SEC is unlikely to approve a spot ETF, citing insights from Better Markets. The uncertainty has affected not only Bitcoin but also Ethereum, which saw $9 million in outflows.
Hot Take: ETH Price Faces Bearish Pressure Amidst Uncertainty
The price of Ethereum is facing bearish pressure as it drops to $1,664. The market-wide sell-off and uncertainty surrounding the SEC’s approval of a US spot-based ETF have contributed to the decline. ETH is at a critical point, with the potential for further sell-offs if support at $1,650 is broken. The short-term outlook indicates a bearish trend. Overall, the crypto market is likely to remain uncertain in the coming weeks, especially with the possibility of more rate hikes by the Federal Reserve in September.
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