Ethereum price: ETH technical outlook as crypto dumps

Posted on

  • Ethereum Price Prediction after the market dropped on a lot of negative news.
  • The New York Attorney has sued KuCoin for selling unregistered securities and not registering as a broker-dealer.
  • If the bulls fail to consolidate above $1,400, Ethereum price could decline further lower.

ethereum price Friday morning plunged below $1,400 as the broader cryptocurrency market bled blood amid several negative catalysts.

As bitcoin price plummeted below $20,000, ETH price dropped nearly 10% to $1,379 after rejecting a high of $1,545 on major exchanges. Ether is currently trying to recover losses above $1,400, but it remains well below the important $1,450 resistance line.

Losses in the last 24 hours are now around 8%, compared to -14% over the past week.

Ethereum Price Prediction: ETH, Crypto Market Dumped on KuCoin News

The drop in Ethereum price follows a broader crypto market rot that has been observed for most of the week. Selloff triggers include Silvergate Bank and the overall uncertainty in financial markets following Fed Chair Jerome Powell’s testimony in the US Congress this week.

More negativity poured into the crypto market on Thursday after Silvergate announced it was closing its crypto bank, causing traders even more losses as ETH plummeted below $1,500.

But negative pressure mounted after New York Attorney General Letitia James filed Lawsuit against cryptocurrency exchange KuCoin, KCS Price, Native KuCoin Tokenfell after the news.

as CoinJournal informed of Today, the lawsuit claims that KuCoin is selling crypto securities and is not registered as a broker-dealer in the state of New York. The lawsuit names ETH as one of the securities that KuCoin illegally sold to customers.

,The petition argues that ETH, like LUNA and UST, is a speculative asset that relies on the efforts of third-party developers to provide profits to holders of ETH. Because of that, KuCoin was required to register before selling ETH, LUNA, or UST.the NYAG said in a press release.

The lawsuit also alleges that KuCoin sold unregistered securities to customers in the jurisdiction through its KuCoin Earn product. KuCoin Earn is a lending and staking product.

The New York Attorney General’s Office further complained that KuCoin had failed to register as a securities and commodities broker as required under the law. As the market reacted to the news, Ethereum tanked – along with other cryptocurrencies.

Ethereum Price Prediction: Short Term Technical Outlook

First to the oxen:

If the sentiment flips positive and ETH/USD bounces higher, the first major hurdle lies near the $1,430 supply area. A bid above $1,500 could propel ether price to retest the $1,574 resistance.

But as on-chain data from Glassnode shows, ETH open interest (perpetual futures) hit a three-month low as of December 16. Using this as an indicator of market sentiment and potential price action, we can say that the bears are showing strength.

On the technical front, ETH price broke below the 50 daily simple moving average (50 SMA) on March 3, with the breakdown pushing the price below a key uptrend line. The cryptocurrency has also settled below the 200-day SMA from the rot it had seen over the past week.

Elsewhere, the Relative Strength Index (RSI) indicator on the daily chart is just above the lower band, indicating that the bearish trend is likely to continue.

This is a technical picture that suggests a bearish consolidation in the near term with the potential for a major struggle for the bulls at the critical support area near $1,400-$1,380. Beneath this, there could be a drop to a low of $1,240 with an objective of $1,166.

here is one chart Showing the technical outlook for Ether.

Ethereum price chart after the price drop on March 9. Source: trading view

Leave a Reply

Your email address will not be published. Required fields are marked *