7% ETH decline: Ethereum price forecast as AI sell-off pressures crypto

$2,230: Ethereum price today

• 7% is Ethereum's decline towards $2,230. The fall erases its entire post-midterm election advance.
• Regulatory concerns following the Democrats' takeover of Congress weighed on the leading altcoin, the wider crypto market and AI-related shares.
• Failure to recover $2,251 could leave ETH testing support at $2,204.

7% is Ethereum's (ETH) decline on Thursday. The price falls to $2,230 as selling in AI shares spreads to cryptocurrencies.

All of Wednesday's post-US midterm gains were erased by the leading altcoin's retreat. ETH liquidations reached $181.8 million over the past 24 hours, with long positions accounting for the bulk at $149.7 million, Coinglass data show.

Exchange net deposits, by comparison, stood only slightly above 7,000 ETH. That suggests either reduced spot selling pressure on centralised crypto exchanges or buying by investors taking advantage of the decline. Reluctance to transfer funds to exchanges could reflect caution following last week's Binance hack involving $6.3 billion.

How traditional investors are reacting will become clearer from US spot ETH exchange-traded fund (ETF) flows after the market closes. According to SoSoValue data, Wednesday brought net inflows of $53 million into these products. It was their first positive session since inflows of $4.33 million on October 23.

5% crypto market slide accompanies equity losses

A broad retreat in cryptocurrencies and technology shares has pulled Ethereum lower. Across the market, a 5% fall in crypto market capitalisation triggered nearly $1.18 billion in futures liquidations during the past 24 hours.

Heavy selling in US markets preceded the crypto decline. Losses reached 5% for the technology-heavy Nasdaq Composite (NASDAQ) and 4% for the S&P 500. AI-related stocks drove the retreat. Down 10%, the Semiconductor Index (SOX) is on course for its worst session since the March 2020 Covid-19 crash.

Traders may be stepping back as they face an uncertain regulatory outlook for crypto and AI following the Democrats' capture of both chambers of Congress in Tuesday's US midterm elections.

$2,251 support retest: Ethereum technical outlook for ETH

The daily chart shows ETH back below its 20-, 50- and 100-day Exponential Moving Averages (EMAs). Grouped between roughly $2,345 and $2,405, these averages are limiting recovery attempts. A Relative Strength Index (RSI) reading of 40 and a Stochastic reading near 28 signal that bearish momentum has regained dominance.

A narrow band of initial resistance combines the 100- and 20-day EMAs around $2,344-$2,348 with the nearby horizontal level at $2,355. Above this cluster, the 50-day EMA at $2,405 presents the next barrier. More substantial resistance follows at $2,548, $2,637, $2,782 and $3,076.

Immediate downside support lies at $2,251, followed by $2,205 and $2,107. If sellers recover momentum, a deeper fall could bring the lower support levels of $1,972 and $1,828 into play.

(The technical analysis of this story was written with the help of an AI tool. Know more.)