10X Research: ETH could fall to $1,200 if $1,600 support breaks

With ETH trading at the key $1,600 support level, 10X Research has suggested that if this level is breached, the next major support zone would be $1,200, a level associated with the recovery following the FTX collapse. In a post on X, the firm explained that technically, ETH/USDT is trading below its seven-day and 30-day moving averages and has continued its bearish trend with a 7.4% decline over the past week. Key factors pressuring investor sentiment include organizational restructuring involving a 20% workforce reduction, financial concerns following the termination of an incentive program for core developers, and persistent outflows from spot Ethereum ETFs amid weak institutional demand. 10X Research added that with a lack of specific momentum this week, ETH will likely remain influenced by macroeconomic variables such as the Fed's hawkish stance, a strong U.S. dollar, and stock market volatility.