Ethereum in a Tough Spot as Crypto Woes Persist
ETH/USD Analysis
It has so far been a tumultuous month for the Crypto world, as crypto exchange FTX recently filed for bankruptcy [1], after its liquidity crunch that shocked the industry. This comes on the back of a very bad year for digital coins and related firms, amidst tightening regulatory environment and fears over the health of the industry.
ETH/USD sheds close to 30% of its value in November and remains in a perilous state, as markets monitor the fallout from the FTX collapse. The popular altcoin had put up a resistance earlier in the month and had avoided 2022 lows, but this reaction proved short-lived. It stays on the defensive and in risk of fresh lows towards the 1K mark, although it may be early to talk about further slump that would challenge 879.50.
On the other hand, ETH/USD showed some resiliency last week and a close the weekend gap (at around 1,200) would not be surprising. However, a significant change in sentiment would be required for daily closes above the EMA200 (currently at 1,360-5), which would pause downside bias.
Nikos Tzabouras
Senior Financial Editorial Writer
Nikos Tzabouras is a graduate of the Department of International & European Economic Studies at the Athens University of Economics and Business. He has a long time presence at FXCM, as he joined the company in 2011. He has served from multiple positions, but specializes in financial market analysis and commentary.
With his educational background in international relations, he emphasizes not only on Technical Analysis but also in Fundamental Analysis and Geopolitics – which have been having increasing impact on financial markets. He has longtime experience in market analysis and as a host of educational trading courses via online and in-person sessions and conferences.
References
| Retrieved 18 May 2024 https://twitter.com/FTX_Official/status/1591071832823959552 |
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, as general market commentary and do not constitute investment advice. The market commentary has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and it is therefore not subject to any prohibition on dealing ahead of dissemination. Although this commentary is not produced by an independent source, FXCM takes all sufficient steps to eliminate or prevent any conflicts of interests arising out of the production and dissemination of this communication. The employees of FXCM commit to acting in the clients' best interests and represent their views without misleading, deceiving, or otherwise impairing the clients' ability to make informed investment decisions. For more information about the FXCM's internal organizational and administrative arrangements for the prevention of conflicts, please refer to the Firms' Managing Conflicts Policy. Please ensure that you read and understand our Full Disclaimer and Liability provision concerning the foregoing Information, which can be accessed here.