Ethereum price nosedives as Binance backs out of FTX acquisition

Ethereum price nosedived during the US midterm elections As price declined. The technicals suggest a sweep-the-lows event is underway. Key levels have been defined to gauge ETH’s potential landing ground.

Ethereum price rolls over

Ethereum price has suffered a devastating liquidation as the bears have produced a 30% decline since November 1. The free-fall mudslide has picked up momentum in recent hours as an influx of volume can be spotted on the daily chart. Now that sidelined bears have joined the trend, the ETH price may have a hard time recuperating. 

Ethereum price currently auctions at $1,163. The sell-off comes at an interesting time as two powerhouse exchanges, Binance and FTX, feud over risk-on policies. On November 9, Binance announced it would fully acquire FTX and provide aid to the liquidity crunch experienced during the devastating selloff. During the Asian session, a Twitter handle by the name of unusual_whales tweeted that “Binance may want to pull out of the deal after glancing at the exchange books.” 

Hopefully, the ending feud will bring resolve to the crypto market decline. If not, Ethereum could continue declining toward the summer lows at $880 for a further 25% decline. The Relative Strength Index confounds the sweep-the-lows idea as the indicator has lost support and now declined into extremely oversold territory.

For traders looking to join the downtrend, invalidation of the bearish case can occur if the bulls breach the $1,360 liquidity levels. If the level is tagged, ETH could re-route north and rally towards $1,800 and potentially $2,000. Such a move would result in an 80% increase from the current Ethereum price. 

ETH USDT 4-Hour Char

In the following video, our analysts deep dive into the price action of Bitcoin, analyzing key levels of interest in the market. -FXStreet Team