Ethereum price pulled back on Monday.
DeFi, gaming and NFT activities have declined sharply.
It also fell due to ongoing protests from China.
Ethereum Prices came under extreme pressure on Monday as global risks pushed asset prices down. ETH/USD dropped to 1,170, the lowest level since November 23. It is up a few points from this month’s low of 1,075. Other coins such as BTC, XRP, MOB, Cocos and Flux also plunged.
FTX crisis continues
ETH price has declined in the past few days due to concerns about the FTX crash. You can read more about the crisis Here, Since the collapse, fears of contagion have dragged down the prices of most cryptocurrencies.
The crisis continued through the weekend. In the United States, regulators are asking questions about Genesis, a major player in the crypto lending business. The company is notable because it is owned by Digital Currency Group, one of the largest crypto conglomerates in the world. DCG has already hired restructuring advisors as it faces significant going concern risks.
Meanwhile, according to the Financial Times, most audit firms are treating crypto clients as high risk. As such, they are treating them to more aggressive audits because the industry is on the mend.
Ethereum price has been in a downtrend as it comes under pressure from major industries like DeFi and NFTs. Its total value locked (TVL) in the DeFi industry has dropped from $150 billion to around $38.3 billion.
Furthermore, the data shows that the Ethereum NFT volume has been on a downward trend. In November, the number of unique shoppers decreased from 172,284 to 151,352. The total Ethereum NFT volume has dropped from an all-time high of $3.99 billion in January to $364 billion in November.
Other key areas in the Ethereum ecosystem, such as gaming and payments, have seen their volume and activity drop sharply.
ethereum price The decline was also due to investor reaction to the ongoing protests in China. Most of the stocks and commodities have declined due to these protests.
Ethereum Price Forecast
so, is it safe buy ethereum dip? The four-hours chart shows that ETH price has been in a strong bearish trendline over the past few days. It has moved below the descending trend line shown in yellow. The coin has also fallen below the 25-day moving average while the Relative Strength Index (RSI) is declining.
The coin will likely continue to decline as sellers target the bottom of the triangle pattern at $1,100. A move above the $1,200 resistance will invalidate the bearish view.