Ethereum in a Tough Spot as Crypto Woes Persist

ETH/USD Analysis

It has so far been a tumultuous month for the Crypto world, as crypto exchange FTX recently filed for bankruptcy , after its liquidity crunch that shocked the industry. This comes on the back of a very bad year for digital coins and related firms, amidst tightening regulatory environment and fears over the health of the industry.

ETH/USD sheds close to 30% of its value in November and remains in a perilous state, as markets monitor the fallout from the FTX collapse. The popular altcoin had put up a resistance earlier in the month and had avoided 2022 lows, but this reaction proved short-lived. It stays on the defensive and in risk of fresh lows towards the 1K mark, although it may be early to talk about further slump that would challenge 879.50.

On the other hand, ETH/USD showed some resiliency last week and a close the weekend gap (at around 1,200) would not be surprising. However, a significant change in sentiment would be required for daily closes above the EMA200 (currently at 1,360-5), which would pause downside bias.