As selling pressure continues in the cryptocurrency market, market analysis firm 10X Research has released a noteworthy assessment of Ethereum ($ETH). The company stated: $ETH The price is trading at the important $1,600 support level and below this level, the next important support point could be at $1,200.
A post on the X platform highlighted that the $1,200 level stands out as an important support zone, especially in the recovery process that began after the FTX exchange crash. Analysts noted that the current technical outlook shows a weak signal for Ethereum.
According to 10X Research, $ETHThe /USDT pair is trading below both the 7-day moving average and the 30-day moving average. Additionally, Ethereum has lost 7.4% of its value over the past week, continuing its downward trend. Technical indicators suggest that the market has not yet built strong upward momentum.
The report also lists the main factors undermining investor confidence. These include a roughly 20% reduction in the workforce as part of the restructuring of the Ethereum ecosystem, financial concerns arising from the end of the incentive program for core developers, continued capital outflows from the Spot Ethereum ETF, and more. weaker-than-expected demand from institutional investors was also cited as a factor weighing on the market.
The company stated that there are no strong catalysts to support Ethereum price in the short term. Therefore, it is evaluated that the following directions are possible. $ETH Much will depend on macroeconomic developments. In particular, it was noted that the tightening monetary policy stance of the US Federal Reserve (FRB), the appreciation of the US dollar, and fluctuations in global stock markets will continue to affect Ethereum.
Analysts say holding the $1,600 level will be important for investors, predicting that a loss of this support could accelerate selling pressure and push the price back towards the $1,200 level.
*This is not investment advice.
