The crypto market is currently haemorrhaging in one of the largest slumps faced this year, ignited by the battle between FTX and Binance this week.
The acquisition of FTX by Binance has led to one of the fastest and most impactful crypto market crashes, which has bled nearly $130 billion from the market cap in the last 24 hours.
Several cryptocurrencies are facing their worst trading sessions, whereas leading assets like Bitcoin and Ethereum plunge by 15%.
Ethereum Begins Its Trailer Before Plunging Hard
The global macroeconomic factors were not enough, as the collapse of the FTT token and Sam Bankman-Fried’s empire are now playing the leading role in marking a prolonged bearish impact on the crypto space.
The global crypto market is now trading at the lowest level since September as it has entered the final support zone. Most of the major cryptocurrencies are gaining pace to drop in value, and Ethereum is not behind in joining the race.
According to a prominent crypto analyst, CryptoCapo, Ethereum may get hit hard by the negative market sentiments and trigger a strong bearish momentum in the price chart.
CryptoCapo analyzed that ETH price may plunge hard as it has been making long bearish candles in the price chart since the market crash.
He predicted that Ethereum might reach a bottom price range of $700-$750 if it fails to hold its support level near $1,250.
Moreover, another crypto analyst, Justin Bennet, predicted that Ethereum might repeat its 2018’s bearish market trend, where ETH lost over 94% of its value, plunging from a high of $1,440 to a low of $86. The analyst mentioned,
“Reminder: The ETH bottom is probably closer to $300 than $1,000. The only thing that has changed is Ethereum being one step closer to its macro bottom. Just my opinion, as always.”
Ethereum May Reach Triple Digits!
Ethereum has been experiencing a stable bearish trend since September, and now the momentum is further accelerated by the weekly sell-off due to FTX’s demise.
According to CoinMarketCap, Ethereum is trading at $1,164 with a downtrend of 25%.
Looking at the daily price chart, Ethereum made a false breakout above the resistance level of $1,600 and significantly dropped to a low of $1,233 yesterday.
The Bollinger bands are forming a supportive region for Ethereum in the price chart as the lower limit is at $1,031, acting as a crucial support level.
The RSI-14 trend line has been making a vertical line downwards from a level of 61 to 32, showing that Ethereum may head toward $850 if the crucial support level breaks.
EMA-100 and EMA-200 are leaning downwards, hinting at an acceleration of ETH’s current bearish trend till it reaches the $1K mark.
However, Ethereum is anticipated to make a bullish recovery if it stabilizes its price after falling below $800. The Bollinger band’s upper limit will be at $1,134, a bullish target for Ethereum if it makes a bounce back near $1000.