The recent crackdown by the United States SEC on prominent crypto exchanges, Binance and Coinbase, has had a significant impact on Ethereum (ETH), the second-largest cryptocurrency. Last week, Ethereum experienced aggressive selling pressure, resulting in a notable price decline of approximately 7.25%.
Ethereum Price at a Tipping Point: Make or Break Decision Looms
In the past three weeks, Ethereum’s price has experienced a retracement of over 10% from $1928 to $1716. If the price drops below the $1700 support level, it could pose challenges for the bulls in regaining their dominance.
The weekly chart for Ethereum reveals a slip below the 20-SMA, raising concerns that if buyers are unable to maintain the $1700 support zone, a further downward movement of approximately 10% could transpire. At the same time, the weekly RSI appears relatively flat within the 50-range, indicating a slight sideways momentum in the market.
As the week unfolds, could the immediate support levels serve as a crucial threshold for a potential rebound? The bears have strategically positioned their selling orders around the legging span B (at the $1868 level) of the Ichimoku Cloud indicator. Furthermore, the descending trendline could pose an obstacle to Ethereum’s recovery efforts.
At press time, the price of Ethereum stands at $1740 after experiencing a slight overnight decline of 1%. CoinMarketCap data reveals a 24% decrease in trading volume, amounting to $5.2 billion, indicating fear among traders, withholding them from taking any positions in the uncertain market condition.
Also Read: SEC Lawsuits Cause Massive Price Drops in Bitcoin; Eyes 25k
The daily RSI indicates a bearish signal as it approaches the oversold region, while the Moving Average Convergence Divergence (MACD) remains in the negative zone. These two critical technical indicators collectively suggest the presence of selling pressure in Ethereum.
Will the SECs legal crackdown cause the price of ETH to fall to an yearly low? Or will the crypto community come out on top. Stay tuned to keep yourself updated with the latest news in the crypto industry.
