According to Cryptocurrency Analysis Company 10X Research, the Critical Level for Ethereum is $1,600; a Break Below This Level Could Lead to a Decline!
As selling pressure continues in the cryptocurrency market, market analysis company 10X Research has published a noteworthy assessment for Ethereum ($ETH). The company stated that the $ETH price is trading at the critical $1,600 support level, and a break below this level could see the next significant support point at $1,200.
A post on the X platform emphasized that the $1,200 level stands out as a significant support zone, particularly in the recovery process that began after the FTX exchange crash. Analysts noted that the current technical outlook gives weak signals for Ethereum.
According to 10X Research, the $ETH/USDT pair is trading below both its 7-day and 30-day moving averages. Furthermore, Ethereum has lost 7.4% of its value in the past week, continuing its downward trend. Technical indicators suggest that the market has yet to build strong upward momentum.
The report also listed key factors undermining investor confidence. These included the approximately 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, and ongoing capital outflows from spot Ethereum ETFs. Weaker-than-expected institutional investor demand was also cited as a factor putting pressure on the market.
The company stated that there is no strong catalyst to support the Ethereum price in the short term. Therefore, it is assessed that the direction of $ETH will largely depend on macroeconomic developments. In particular, it was noted that the tight monetary policy stance of the US Federal Reserve (Fed), the strong US dollar, and volatility in global stock markets will continue to affect Ethereum.
Analysts predict that maintaining the $1,600 level is critical for investors, and that a loss of this support could accelerate selling pressure and pull the price back towards the $1,200 region.
*This is not investment advice.