As selling pressure continues in the cryptocurrency market, market analysis firm 10X Research has released a noteworthy valuation for Ethereum ($ETH). The company stated that the $ETH The price is trading at the critical support level of $1,600, and a break below this level could see the next important support point at $1,200.
An article on Platform X 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 gives weak signals for Ethereum.
According to 10X Research, the $ETHThe /USDT pair is trading below its 7-day and 30-day moving averages. Additionally, Ethereum lost 7.4% of its value last week, continuing its downward trend. Technical indicators suggest that the market has not yet built strong bullish momentum.
The report also lists the main factors that undermine investor confidence. These include the approximately 20% reduction in headcount as part of the restructuring of the Ethereum ecosystem, financial concerns arising from the end of the core developer incentive program, and ongoing capital outflows from Ethereum spot ETFs. Weaker-than-expected demand from institutional investors was also cited as a factor putting pressure on the market.
The company said there is no strong catalyst to support the Ethereum price in the near term. We therefore believe that the management of $ETH will depend to a large extent on macroeconomic developments. In particular, it was noted that the tight monetary policy of the US Federal Reserve (Fed), the strength of the US dollar and the volatility of global stock markets will continue to affect Ethereum.
Analysts predict that holding the $1,600 level is critical for investors and a loss of this support could accelerate the selling pressure and bring the price back towards the $1,200 region.
*This does not constitute investment advice.