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FTX's FTT exchange token, which makes up a significant amount of Alameda's assets, is down 5% as Binance's CEO Changpeng Zhao publicly feuded with Alameda's CEO Caroline Ellison about selling off Binance's FTT holdings. Data from Nansen shows that FTX is suffering from a significant spike in exchange outflows. During the last week, approximately US$292 million in stablecoins have left FTX. Traders could be departing the exchange over fears of liquidity issues, as Alameda is a large market maker on FTX.
At the same time, according to the data, Alameda holds the equivalent of US$1.2 billion in SOL on its balance sheets. In this regard, experts note that in addition to the pressure on the SOL price due to the general situation around Alameda and FTX, there is a risk that its large holder could sell the Solana token in order to stimulate solvency.
This recent FTX-Alameda drama caused the market crash. Bitcoin, Ripple, and BNB faced an increase in selling pressure. Ether price declined over 7% and there was a substantial decline below the 76.4% Fib retracement level of the main increase from the US$1,500 swing low to the US$1,675 high.
The price now trading below US$1,500 and the 100 hourly simple moving average. It is trading near the 1.236 Fib extension level of the main increase from the US$1,500 swing low to the US$1,675 high. Immediate resistance on the upside is near the US$1,500 level. The next major resistance is near the US$1,540 level or the recent breakdown zone. There is also a major bearish trend line forming with resistance near US$1,570 on the hourly chart of ETH/USD.
If Ethereum fails to climb above the US$1,500 resistance, it could continue to move down. Initial support on the downside is near the US$1,460 level. The next major support is near the US$1,420 level, below which ether price may perhaps extend losses. In the stated scenario, the price could decline toward the US$1,350 support zone in the near term.
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