10x Research: Ethereum Risks Falling to $1,200 If $1,600 Support Breaks

Ethereum is testing support near $1,600, and a breakdown could open a move toward $1,200, a level 10x Research links to the magnitude of the pullback seen since the FTX collapse. According to ChainCatcher, the firm said Ethereum is trading below its 7-day and 30-day moving averages and is down 7.4% over the past week. 10x Research attributed recent downside pressure to the Ethereum Foundation cutting 20% of its staff, alongside warnings of a funding crunch after a key developer incentive program expired. The report also cited continued net outflows from spot Ethereum ETFs and weak institutional demand as constraints on upside. It added that on-chain data shows asset accumulation has fallen to a multi-year low, while a rising transaction failure rate has cooled network demand. With few market-moving headlines expected this week, 10x Research said macro headwinds remain the main driver, including a hawkish Federal Reserve stance, a stronger U.S. dollar, and equity market volatility.