If Ethereum's $1600 support falls or drops to $1,200

According to 10xResearch analysis, Ethereum is currently at the $1,600 support level, and if this level falls, the next target level is $1,200-the retracement level since the FTX crash. Ethereum is now trading below its 7-day and 30-day moving averages, down 7.4% weekly. The recent 20% layoff of the Ethereum Foundation triggered a sharp drop in prices, while warnings of a funding crisis following the expiration of key developer incentive programs further depressed market sentiment. Continued net outflows from spot Ethereum ETFs and weak institutional demand severely constrained upside, with on-chain data showing asset accumulation hitting multi-year lows, while rising transaction failure rates led to cooling network demand. Market news was light this week, and the dominant factors for prices were still macro headwinds: the Fed's hawkish stance, a stronger dollar and stock market volatility.