Data: Ethereum support at $1,600 may break down, potentially dropping to $1,200

According to 10x Research analysis, Ethereum is currently at a support level of $1,600. If this level is broken, the next target will be $1,200—this is the retracement level since the FTX collapse. The current price of Ethereum is below the 7-day and 30-day moving averages, with a weekly decline of 7.4%. The recent 20% layoffs at the Ethereum Foundation have triggered a significant price drop, while warnings of a funding crisis after the key developer incentive program expired have further dampened market sentiment.

Continuous net outflows from the spot Ethereum ETF and weak institutional demand severely limit upside potential. On-chain data shows that asset accumulation has reached multi-year lows, while an increase in transaction failure rates has led to a cooling of network demand. This week, market news is sparse, and the main price-driving factors remain macro headwinds: the Federal Reserve's hawkish stance, a strengthening dollar, and stock market volatility.