- Ethereum price crashed to te lowest level since November 9.
- Its DeFi TVL has slumped to about $38 billion.
- NFT volume in Ethereum has been in a strong bearish trend.
Ethereum price remained under intense pressure on Monday as the FTX fallout continued and as the fear and greed index slipped. ETH was trading at $1,130, which was the lowest level since November 9. It has crashed by more than 32% below the highest level this month.
Crypto fear and greed slips
ETH price has been in a strong bearish trend in the past few days as concerns about FTX continued. More revelations have emberged in the past few days. For example, it was revealed that FTX owed more than $3 billion to 50 top creditors.
Cryptocurrencies have plunged as investors worry about contagion in the industry. Contagion happens when problems in one asset leads to more declines in other assets. A good example of this was how challenges in the housing market led to the collapse of the American financial system in 2008/9.
As a result, the crypto fear and greed index has tumbled to 20, the lowest level in weeks. Historically, assets like stocks drop when investors are fearful.
Learn how to buy Ethereum.
Meanwhile, Ethereum’s ecosystem data shows that its ecosystem is having significant challenges. The total value locked (TVL) in the network has dropped by 16.7% in the past 30 days to $38.47 billion. At its peak, Ethereum had a TVL of over $150 billion.
Ethereum’s fees have also dropped. The network collected fees paid by protocol users excluding gas fees dropped to $1.8 million. Fees accrued to the protocol that will go to treasury and token holders dropped to $1.5 million.
The volume of Ethereum’s NFTs has also been in a downward trend in the past few months. After peaking at over $3.9 billion in January, the volume slumped to $324 billion in October. It has now handled over $274 billion this month alone.
Ethereum price forecast
The four-hour chart shows that the ETH price has been in a strong bearish trend in the past few days. It has managed to move below the important support level at $1,172, which was the lowest level on November 14.
Ethereum has dropped below all moving averages while the Relative Strength Index has moved to the oversold level. Therefore, the path of the least resistance for the ETH/USD price will be to the downside.
If this happens, the next key support level to watch will be at $1,071, the lowest level on November 10.
