Ethereum Amid FTX Crisis: ETH Plunges 22%

Ethereum and other cryptocurrency markets are currently facing yet another devastating disaster. They called it a “black swan” event and caused the collapse of one of the world’s largest cryptocurrency exchanges, FTX.

Binance, the world’s largest cryptocurrency exchange, abruptly exited Wednesday, announcing it would not acquire rival FTX.com, amid allegations of mismanaging customer funds and government scrutiny. .

The term “black swan” is a metaphor for an unexpectedly large and inevitable event that can be explained in retrospect.

The market recovery mood of the past few weeks has been dashed, with the major cryptocurrencies falling to their lowest levels since 2022 as a result of the event.

This has contributed to the severe drop in the cryptocurrency market. In the early hours of Thursday, the global cryptocurrency market capitalization fell more than 10% to $809 billion, as did major cryptocurrencies.

Binance CEO Changpeng Zhao and FTX CEO Sam Bankman-Fried (left). Image: NBC News.

Ethereum: An Overview of Price Performance

In light of recent events, the value of Ethereum and the broader cryptocurrency market has fallen sharply over the past few hours.

The US midterm elections saw the value of the second largest cryptocurrency plummet. ETH is down, but technicals indicate that the so-called ‘Sweep the Low’ event may be on the horizon.

Here is a quick diagnostic for ETH.

Additionally, trading volume on all cryptocurrency exchanges in the last 24 hours increased by 94% to $230.29 million. As of this writing, DeFi volume is $10.46 billion, or 4.54% of his total 24 hour volume of all cryptocurrencies.

ETH Loses Grip At $1,200 Handles – Will Ethereum Fall Further?

As of this writing, ETH is trading at $1,190, down 21% over the past seven days and not holding the $1,200 handle, according to CoinGecko data on Wednesday.

All but the top 100 cryptocurrency stablecoins are currently in red, the others are colored green.

Ether is now consolidated and its price could soon challenge the $1,000 support area.

Over the past week, Ethereum has lost 27.3% of its value. This is bigger than Bitcoin, which lost 27.3%. Further, continued selling pressure has pushed the price below the $1250 monthly support level.

Meanwhile, the market seems poised for a drop in the price of ETH and other major cryptocurrencies as Binance’s plans to buy FTX no longer materialize.

ETH market cap at $145 billion on the daily chart | Featured image from The Merkle News, Chart: TradingView.com