Ethereum price remained under pressure on Tuesday as FTX contagion concerns continue to weigh on on the market sentiment. The altcoin may record subtle movements in coming sessions as investors are keen on whether a Fed’s dovish stance will save the digital currencies market.
Fundamentals
With the ongoing contagion concerns in the broader crypto industry, Ethereum price has continued to trade below the once steady support zone of $1,400. In fact, the aforementioned level has been an evasive one for bulls for about a month now.
Notably, the risk-off mood is observable through the crypto fear & greed index, which is back to the extreme fear end of the spectrum. The closer the figure is to zero, the higher the level of risk aversion in the market. Compared to last month’s reading of 40, the index was at 25 on Tuesday. Indeed, this is a lower figure than the prior session’s fear level of 26.
For as long as the FTX contagion persists, Ethereaum price will likely continue to trade below the crucial level of $1,400. However, in the horizon is the December Fed meeting, which is expected to be a major catalyst for cryptocurrencies and other financial markets. A dovish stance by the central bank could just be the driver that catapults the altcoin past that major resistance zone.
Ethereum price prediction
As seen on its four-hour chart, ethereum price was trading below the 25-day EMA in early Tuesday trade even as the longer 50-day EMA supports the altcoin. Besides, it dropped below the neutral level with an RSI of 47.
Based on these technical indicators, coupled with the fundamentals, ETH/USD will likely continue to struggle in the ensuing sessions. Indeed, I expect the crypto to remain below the crucial support-turn-resistance zone of 1,400 for a while longer.
In the short term, ethereum price may continue to find resistance at 1,273.99. With further rebounding, 1,308.08 and the upper level of 1,351.25 will be resistance zones worth watching. However, this cautiously bullish thesis will be invalidated by a pullback below the psychologically crucial zone of 1,200.
