The FTX contagion continues to spread, taking the global cryptocurrency market down. Most of the altcoins fell on Tuesday along with bitcoin and Ethereum. The global crypto market cap stood at $786.6 billion, with a volume of nearly $66.7 billion in the past 24 hours.
The leading altcoin and smart contract platform, Ethereum is currently facing extreme heat as the FTX hacker has been selling large amounts of ETH tokens. According to the latest Etherscan reports, the hacker transferred Ethereum in several batches of 15,000 ETH.
ETH Price to Crash 50% in Coming Days
A popular crypto strategist altcoin sherpa altcoin sherpa Altcoin Sherpa Market Analyst mapped potential low levels for Ethereum (ETH). As per the analyst, ETH prices could drop by 54% from current prices if another major event like a prominent firm filing bankruptcy hits the crypto markets.
As per the chart, there is still support above the $900 level, but the $500 range awaits below.
At present, Ethereum is attempting to reclaim the $1,100 level. However, the largest altcoin is likely to see a strong downtrend continuation as ETH/USD has broken through the lower side of a symmetrical triangle
In this case, the major support lies at the $1,000 level, below which ether price may perhaps gain bearish momentum and could decline towards $920. In case of an extended rally, the ETH price can further drop to $880 or $800 levels.
On the other hand, on the upside, the major resistance is at the $1,150 level.
Why are Institutional Investors are Shorting Ethereum?
More institutional investors than ever are betting on the price of Bitcoin and other cryptocurrencies going down, according to a Monday report from CoinShares.
“Ethereum saw minor outflows totaling $0.8 million although it also saw the largest inflows on record into short-Ethereum investment products totaling $14 million. This negative sentiment is likely a result of renewed uncertainty over the Shanghai update, which will allow the withdrawal of staking assets, and the hacked FTX ETH assets which sum to ~$280 million.”
What Next For ETH Price?
There is not enough demand to absorb all 180,000 of the remaining tokens if the FTX hacker dumps them on the market. The support level of $1,000 is already weak and would provide bears with easy prey.
On the other hand, the hacker might stop dumping coins and wait for a price increase, giving the market some time to stabilize itself.