After the collapse of FTX, the ETH tokens moving on the Ethereum network have caused investors further losses. The price must exceed USD 1,500 to break out of the downward trend, but there might be selling of significant short-term rebounds.
Ether (ETH), the cryptocurrency of the Ethereum network, has recently recovered as stocks rise and the US dollar falls.
Investors last bought ETH in the USD 1,250 area, a rise of 0.75% over the last 24 hours. Furthermore, its price has increased by around 2.5% from its weekly lows of about USD 1,220.
However, Ether has been trading above USD 1,300, around 4.5% below its early weekly highs. The bulls have tried to regain control after FTX collapsed about a month ago.
Before the above exchange went bankrupt, ETH traded between USD 1,500 and USD 1,600. After that catastrophic event, there have been continuous rebounds to USD 1,300 in the crypto market.
According to data from Santiment, ETH tokens moving on the Ethereum network have caused higher losses after the FTX collapsed. There might be an increase in the sale of the crypto asset by weak hands in the short term.
The Price of Ether Price Might Reach USD 1,300 Again
The ETH price seems to fall within the limits of a short-term bearish flag. However, it is testing the upper levels of that structure, possibly reaching USD 1,300 again.
As the weekend approaches, US stock markets recover while the US dollar weakens. Recent data on US inflation might be the catalyst that the Ethereum bulls need.
Ether recently found support at its 21-day MA and the 23.6% Fibonacci retracement level. That happened after the collapse of FTX, when it went from lows below USD 1,100 to pre-highs of around USD 1,600.
The Bearish Trend Remains Dominant in the Long Term
The long-term bearish outlook will not change significantly, even if ETH recovers or breaks above the USD 1,300 level. Its price has remained locked within an ongoing downward trend since the summer of 2020. Furthermore, it might eventually cap any short-term upside.
Ether would have to break above the USD 1,500 area, 20% above previous levels, to break out of the downward trend. Most long-term bears might continue to sell significant ETH rebounds in the short term.
The Ethereum Whales Continue to Accumulate Tokens in the Long-Term
Long-term price speculators may be bearish, but on-chain data shows that whales remain confident on the upside. According to Santiment, the Ethereum wallets owning between 100 and 1 million ETH added 561,000 tokens.
Ether is trading at around USD 1,280 and has accumulated a 4.3% gain over the last 24 hours. Although its daily trading volume is above USD 6.29 billion, its market capitalization is around USD 154.88 billion, according to CoinGecko.
Investigating Ether or any other cryptocurrency before buying it helps investors make more accurate decisions and avoid losing money. However, it is a matter of time before knowing where the market will take the price of the second-largest cryptocurrency.
By Alexander Salazar