Ethereum [ETH] has suffered a sizable loss this week as the latest FTX-related events wreaked havoc on the crypto market, sending them crashing lower. ETH/USD price fell below $1,200 the lowest level since July. Although, back then the 50 SM (yellow) held the crash on the monthly chart and turned into support.
Ethereum Weekly Chart – The 50 SMA Waiting Below
The 20 SMA has turned into resistance
That moving average was the low back then, below $1,000 and we saw a bounce off of it in July and August, sending ETH/USD above $2,000 for a while. But, the 20 monthly SMA (gray) turned into resistance stopping the bounce and the price reversed back down. In the last two months the price was trading in a range, but since last Friday sellers have returned after the acquisition of FTX exchange from Binance.
Ethereum has dropped by as much as 30% since Friday, but the price action has been part of the ongoing market crash. Although now many retail traders are wondering whether this was a good time and place to buy back Ethereum or to wait until the selling pressure comes to an end.
Ethereum Daily Chart – The 20 SMA Rejected the Price
Stochastic is oversold now
On the daily chart we see that the 200 SMA (purple) turned into resistance, stopping the bullish momentum last week and the reversal eventually came. But, the stochastic indicator is oversold now on this timeframe and today we are witnessing some buying pressure, as buyers [ush the price higher after placing a bottom at around $1,080.