Ethereum price has been in a free fall for the past week amid volatility in the crypto market against the backdrop of regulatory scrutiny. At the time of writing, Ethereum was trading 1.48% lower at $1,767.76. Ethereum, the second-largest cryptocurrency by market cap, has dropped more than 5% in the past week and more than 13% in the past five days. Its total market cap has crashed over the past few days to $217 billion.
Ethereum price has been in the red for seven consecutive days amid a regulatory crackdown and Bitcoin’s congestion. Ethereum is up around 48% in the year to date, but prices have remained volatile. The altcoin has crashed below the crucial support level formed at $1,769.05.
The global crypto market cap has crashed to $1.09 trillion, a decrease of 1.09% over the last day. The total crypto market volume has also dropped by 6%, while Bitcoin’s dominance fell by nearly 1%. Bitcoin, the largest digital currency by market cap, has plunged below its important support level of $26,500.
Scrutiny from US regulators on the cryptocurrency market has been ramped up since the collapse of Sam Bankman-Fried’s crypto exchange platform, FTX. Ripple has been battling a lawsuit against the US Securities and Exchange Commission (SEC) for the past year. Additionally, SEC recently warned American-based crypto exchange, Coinbase, over potential securities law violations.
Analysts have predicted that the crypto volatility could get worse following a Bloomberg report that Jane Street and Jump Crypto, two of the biggest crypto makers, will take a step back from crypto trading in the United States on the back of the regulatory crackdown on cryptocurrencies. The cryptocurrency industry remains in battle with the SEC and the US government accusing them of not laying out clear rules.
The US dollar recorded modest gains on Friday as uncertainty around the US debt ceiling and monetary policy outlook shifted to safe havens. The US Dollar Index rose 0.63% to 102.2589. The US Treasury yields also inched higher on Friday as investors digested this week’s inflation data. The yield on the 2-year Treasury yield rose to 3.994%, while the 10-year Treasury yield increased to 3.463%.
Ethereum Price Outlook
Ethereum price has been on a downward trajectory for the past few days amid volatility in the crypto market. The asset has slipped below the 50-day moving average, exponential moving average, and simple moving average. Its Relative Strength Index (RSI) has continued moving lower, suggesting a selloff, while the Moving Average Convergence Divergence (MACD) indicator suggests a continued bearish trend.
Therefore, with the current volatility in the digital asset market, the Ethereum price is likely to continue falling in the ensuing sessions. As such, the next support level to watch will be the 200-day EMA at $1,689.45. Conversely, a move past the 50-day EMA at $1,848 will invalidate the bearish thesis.