Ethereum price pulled back on Monday.
DeFi, gaming, and NFTs activity have dropped sharply.
It also dropped because of the ongoing China protests.
Ethereum price came under intense pressure on Monday as global risks pushed asset prices lower. ETH/USD plunged to 1,170, which was the lowest level since November 23rd. It is a few points above this month’s low of 1,075. Other coins like BTC, XRP, MOB, COCOS, and FLUX also plunged.
FTX crisis continues
ETH price has been in a downward spiral in the past few days as concerns about the FTX crash. You can read more about the crisis here. Since the collapse, the fear of contagion has pushed most cryptocurrency prices lower.
The crisis continued during the weekend. In the United States, regulators are asking questions about Genesis, a leading player in the crypto lending business. The company is notable since it is owned by Digital Currency Group, one of the biggest crypto conglomerates in the world. DCG has already hired restructuring advisors as it faces significant going concern risks.
Meanwhile, according to the Financial Times, most audit companies are treating crypto clients as high-risk. As such, they are treating them to more invasive audits as the industry remains on the brisk.
Ethereum price has been in a downward trend as key industries like DeFi and NFT come under pressure. Its total value locked (TVL) in the DeFi industry has dropped from over $150 billion to about $38.3 billion.
Further, data shows that the volume of Ethereum NFTs has been in a downward trend. In November, the number of unique buyers dropped to 151,352 from 172,284. The total volume of Ethereum NFTs has dropped from an all-time high of $3.99 billion in January to $364 billion in November.
Other key sectors in Ethereum’s ecosystem like gaming and payments have seen their volume and activity decline sharply.
Ethereum price also crashed as investors reacted to the ongoing protests in China. These protests have led most stocks and commodities to plummet.
Ethereum price forecast
So, is it safe to buy Ethereum dip? The four-hour chart shows that the ETH price has been in a strong bearish trend in the past few days. It has moved below the descending trendline shown in yellow. The coin has also moved below the 25-day moving average while the Relative Strength Index (RSI) has been falling.
The coin will likely continue falling as sellers target the lower side of the triangle pattern at $1,100. A move above the resistance point at $1,200 will invalidate the bearish view.