Ethereum (ETH) price action is uneven, Looking at the performance in the daily chart. currently, The prices are moving in a tight range with a range around $1,560 on the lower side and $1,630 on the upper side.
especially, Prices are inside the bearish candlestick of September 21. In the coming days, how prices react to these two reaction levels could influence the near future.
Notably, a loss below primary support could push ETH even lower in the coming days. This would be especially the case if the draw-down was accompanied by an expansion of trading volume pointing to participation. overall, Traders are looking at fundamental factors as potential triggers that could support prices,
Falling DeFi TVL and Activity, Blame the Fed?
The bear market has significantly affected activity, Looking at trading volume in total value locked (TVL) and non-fungible token (NFT) platforms in decentralized finance (DeFi), As it is, DeFi TVL is below $40 billion, down from $50 billion earlier this year. Meanwhile, NFT trading volume has dropped by 90%. Most of these platforms are in Ethereum.
Traders and analysts point to the higher yields offered by nearly risk-free US Treasuries for the decline in TVL. Once interest rates start to fall, yields will likely decline, meaning some people may choose to provide liquidity for higher yields in DeFi.
Still, it remains to be seen how soon the US Federal Reserve (Fed) will start lowering rates, and it will also have to consider preparing for any impact with its CBDC project and how it will change the picture. JPMorgan and Chase’s Jamie Dimon recently said the Fed could continue raising rates to 7%.
Ethereum Price Analysis
Technically, the path of least resistance is to the south. The bears are in a commanding position, looking at the price action. especially, Prices are inside bearish levels of September 21 And, with light trading volumes, indicating a lack of activity.
Since the sellers are in control, Aggressive traders may unload on every attempt below $1,630. A loss below $1,560 in the upcoming session will confirm the sellers of September 21, Opening the door for more draw-down.
If $1,560 is lost, ETH could fall to a low of $1,400 in March 2023. On the other hand, A fresh bounce above $1,630 coupled with increasing volume could lead to a potential recovery of ETH to $1,730.
Courtesy Technical Chart trading scene,
Disclaimer: The opinions expressed do not constitute investment advice. If you are looking to make a purchase or investment we recommend that you always do your research.
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Source: crypto-economy.com
