Ethereum Subdued Below Key Technical Levels, Struggling to Pause the 6-Week Losing Streak

ETH/USD Analysis

Ethereum dropped to the lowest level since June 2021 (1,723.55) during last week's Crypto rout, which was its sixth consecutive losing one, erasing nearly 60% from its November record high at the time of writing.

Markets have been digesting a series of risk factors ranging from stagflation worries, to the prospects of tighter regulation of cryptocurrencies, while yesterday's tweet's from Ethereum co-founder Vitalik Buterin did not help.

In a series of tweets, he addressed conflicting views around Ethereum and the crypto market. Among other things he expressed his desire to see Ethereum become "a more Bitcoin-like system" and focus on long-term stability, something that would require "quite a lot of active coordinated short-term change". [1]

The two popular cryptocurrencies are definitely alike in their plunge from their record highs, which does not support the inflation hedge/safe-haven narrative.

ETH/USD managed to recover from last week's lows, but remains subdued during the current one, below the key 23.6% Fibonacci of the April High/May Low drop. This keeps risk firmly on the downside and the altcoin remains vulnerable to another shove towards 1,699, but it is probably early to talk for more losses that would threaten 1,397.

On the other hand, the cryptocurrencly stabilizes after last week rout and a successful break above key 23.6% Fibonacci (2,157-64) could open the door for a larger rebound towards the 38.2% level (2,434-48). However, Ethereum does not inspire much confidence for a meaningful recovery at this stage.

Nikos Tzabouras

Senior Market Specialist

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.



Retrieved 06 Dec 2022


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.

Past Performance: Past Performance is not an indicator of future results.

Spreads Widget: When static spreads are displayed, the figures reflect a time-stamped snapshot as of when the market closes. Spreads are variable and are subject to delay. Single Share prices are subject to a 15 minute delay. The spread figures are for informational purposes only. FXCM is not liable for errors, omissions or delays, or for actions relying on this information.

Risk Warning: Our service includes products that are traded on margin and carry a risk of losses in excess of your deposited funds. The products may not be suitable for all investors. Please ensure that you fully understand the risks involved.

${} / ${getInstrumentData.ticker} /

Exchange: ${}

${} ${getInstrumentData.divCcy} ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%) ${getInstrumentData.priceChange} (${getInstrumentData.percentChange}%)

${getInstrumentData.oneYearLow} 52/wk Range ${getInstrumentData.oneYearHigh}