Ethereum price paints ugly picture on chart of what is to come

Ethereum (ETH) price action has been in the crosshairs since Wednesday after claims that crypto platform Genesis blocked any payouts and repayments of funds. It might be the next domino in the wake of the FTX meltdown from last week.

Several other platforms are moving to similar actions, foremost of which is even the Winklevoss-backed platform Gemini delaying withdrawals on its lending program. Again, the alarm bells are flashing for cryptocurrencies, and the price action perfectly translates that sentiment.

ETH price action could dive 15% to this summer's low

Ethereum price is down 1% for the day in early European trading as specifically cryptocurrencies are battered yet again on overnight news that crypto provider Genesis is halting withdrawals. To make matters worse, even the famous and well-known Winklevoss twins, known for their leading role in Bitcoin and Facebook, have cut the withdrawals from their lending program in service provider Gemini. This could spell trouble ahead as the market cap of Gemini is much bigger than FTX. 

ETH price action technically is in an area that fits the current narrative in cryptocurrencies. The drop of 2.88% on Wednesday made ETH price close below the red descending trend line. Bulls have been trying, but the rejection came in hard and pushed price action down 1%, with the risk of more declines toward $1,050 and a possible testing of the low from November.

ETH/USD daily chart

Should the Genesis situation be contained and simply amount to a forgetable little fallout in the aftermath of the FTX debacle, expect to see a push back up to the low of February 1, 2021, at $1,243.89. Next, a fourth test at the monthly S1 support level will come into play. Should bulls be able to take that out and break above it, expect to see some follow-through in ETH price action toward $1,350.