Limited upside, large potential downside for Ethereum price action

Ethereum (ETH) price is withstanding the volatile week markets had to face quite well. With the implosion of the UK bond market, the move towards annexation by Putin and the sabotage of the Nordstrom pipeline, one would think this reads like the new James Bond movie. However, it is an inconvenient truth that markets are facing now, with equities firmly in bear market territory across the globe in Asia, Europe and the US.

ETH price needs to face the inconvenient truth

Ethereum price has not been seen selling off massively after it slipped last week after the perfect ‘buy the rumor, sell the fact’ event in the buildup towards The Merge. Meanwhile, ETH price has been facing many external headwinds and has kept its act together thus far, refraining from further losses. But that false idea of safety could be shortlived as geopolitical tension is firmly building up, and the use of nuclear weapons by Russia could be happening at any moment now.

ETH price is set to receive a shocker of a sell-off as the use of nuclear weapons would face a massive sell-off across the board and see a fight for safe havens. Expect ETH price, even wherever the close might be this Sunday evening, to take a nosedive move. The price target is below $1,000, near the low of June at $883.60.

ETH/USD Weekly chart

As markets will be on edge awaiting any further escalation out of Russia, this is some small room for some upside moves. First ETH price will need to secure the area above $1,404.12 before it could jump higher. But even it is still limited in its movements because of the many tail risks still weighing on the price action, with $1,600 putting up roughly 21% profit on the table and not much more.