ETH Supply Drops to an 11-month low, Price Dips to $1,090

Ethereum’s price plunged from the 24-hour highest high of $1140 to $1084.86 within the past 24 hours, a few hours after the news of an FTX hacker moving another $16 million worth of Ethereum to different wallets. Additionally, the amount of ETH in supply for the last three and five years has dropped to an 11-month low of 13,968,345.949, according to Glassnode.

? #Ethereum $ETH Amount of Supply Last Active 3y-5y (1d MA) just reached a 11-month low of 13,968,345.949 ETH

View metric:https://t.co/IuPSW2dlPi pic.twitter.com/GALl8C1Ai9

— glassnode alerts (@glassnodealerts) November 22, 2022

The price is forming a bullish flag on the 1-Hour chart of Ethereum analysis. Ethereum price also touched the upper trendline of the bullish flag three times. Although the bullish flag pattern usually happens in the bull market, there is less chance of Ethereum recovering from the current bearish trend.

ETH/USDT 1-Hour price chart (Source: TradingView)

Moreover, it is now trading below the 200 moving average, indicating no buying pressure in the market. After the FTX crash, many potential buyers and investors have put off investing in crypto. At the time of writing, the RSI value is now 30.33, which denotes that Ethereum is now facing an oversold or undervalued condition.

The support zone lies between $1,086-$1,076, and the resistance sits at $1,139 and $1,124. If the price breaks down the support level and trades lower, we can see new bottom support of Ethereum around $1,012.

The market capitalization dropped 3.28%, to $133,166,828,452.38, and selling pressure rose, as seen by a 12.83 % increase in volume to $13,261,316,675.64 in the 24-hour trading volume data, causing the market to retreat from its resistance level. Furthermore, throughout the previous week, Ethereum’s price fell 13.03 percent.

To halt the current downward trend on the charts, Ethereum bulls must maintain control above the current support level and push prices higher.

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