Ethereum price takes a turn for the worse, flirts with 10% correction

Ethereum price fails to hit bull target and heads substantially lower.
ETH could risk dropping below $1,700 if support at $1,815 snaps.
Expect a nosedive to move below $1,700 once thin support gives way.

Ethereum (ETH) price is shedding some value this Wednesday as cryptocurrencies dive lower in synchrony. Risk assets are not in the sweet spot with both equities and cryptocurrencies printing red numbers as a safe haven flow unfolds in the markets. The stalemate in the US debt ceiling negotiations, the Fed Minutes later on Wednesday and a 50% of yet another US rate hike in July are just a few elements that are making Ethereum price likely to drop below $1,800.

Ethereum price under pressure from global woes in the markets

Ethereum price was already crashing together with European stocks on Wednesday rather dramatically after comments emerged that the US debt ceiling debate is not going as smoothly as presumed. Add to that increasing inflation worries that might force the Fed to hike again, and US equities are on their back foot as well. Cryptocurrencies did not have many rebuttals against that framing and went along for the ride lower.

ETH already lost 2% intraday and is currently testing support at the green ascending trendline. Once the level at $1,815 snaps, expect to see a quick nosedive move that could easily sink below $1,800. The best guess is that $1,740 would be able to halt the decline, while $1,690 would make more sense as a historically important level. That event would print a new low for April and May in the process.

ETH/USD 4H-chart

A simple bounce off the ascending trendline would see Ethereum price adding value again. A quick return to $1,875 would have bulls mulling whether to try and break above the 55-day Simple Moving Average. If bulls can pull it off and head above $1,882, expect to see follow-through to $1,930 next week.

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