The price of Ether noticed a 22 per cent fall this week in spite of ETH becoming deflationary for the first time since the official Merge. Over 8,000 ETH have been burned within the remaining seven days, bringing the yearly supply rate to -0.354%. In addition to the FTX debacle hampering the asset’s price, a massive number of futures sell-offs led the price to hit a monthly low of $1070 this week. Traders using leverage were surprised when the price action caused the biggest shock on derivatives exchanges since August 18th. The price level of $1070 on November 9th was the lowest since July 14th, marking a 44% correction in three months. At present, ETH is trading at around 6% higher and volume is also up by almost 18% over the past 24 hours.
At the time of writing, ETH was trading at $1,255.
ETH faced stiff resistance at the downsloping trendline (drawn from an all-time high) and witnessed a sharp fall. The prices plunged almost by 36% making the low of $1,074. The asset broke the uptrend line and the long-held support of $1,200 and gave a weekly closing below that. Currently, on a daily time frame, ETH is hovering around the key level of $1,200-$1,250. If the bulls manage to push prices above $1,400 then we can see some up-side move whereas if it sustains below $1,200 then it can lead to further downfall.
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