• After the FTX collapse, Ethereum price has been fighting resistance from moving averages.
• Crypto analysts expect Ethereum to drop a little more and possibly oscillate drop to $700 or even $250.
• Ethereum may need support from the wider market to return to $2,000 and possibly break out to new record highs.
The cryptocurrency market has been through a tumultuous period since the collapse of FTX in November of last year. This has left Ethereum price fighting resistance from the moving averages, more than six weeks after the FTX collapse ended a strong pull toward $18,000. Ethereum’s recovery from $11,26 on November 29 followed better-than-expected U.S. Consumer Price Index (CPI) data.
Nevertheless, just like the wider crypto market, the now proof-of-stake (PoS) cryptocurrency has been shaky throughout 2022. This was further exacerbated by the move by investors to take profits after the Fed announced that it was increasing rates by 50 basis points. The central bank warned that controlling the runaway inflation was still on top of its agenda going into the new year.
As such, market participants are now waiting to see how the market will respond to the Fed’s hawkish stance in 2023. In the meantime, crypto analysts expect the largest altcoin by market capitalization to drop a little more and possibly oscillate drop to $700 or even $250.
A return to $2,000 and possibly a breakout to new record highs may need support from the wider market as the space struggles to shake off the after-effects of Terra’s and FTX’s collapse. Sizetrades, a pseudonymous Ethereum analyst on Twitter, told his over 11,900 followers that Ethereum’s technical set pointed to a continuation of the downtrend. He posted a chart showing Ethereum price was about to confirm a breakdown below the symmetrical triangle with „$ETH measured move“ to $800.
In addition, the analyst stated that Ethereum’s failure to break out of the bearish triangle could be an indication that the altcoin could move lower and likely test the $700 and $250 support zone before bouncing back. As such, Ethereum investors should be weary of the bearish sentiment and be ready to take advantage of any possible bounce back to $2,000.
It remains to be seen whether Ethereum will be able to regain its footing and return to the $2,000 mark. What is clear is that the altcoin will need some sort of support from the wider market in order to make such a return. For now, the best that investors can do is to stay informed and remain vigilant in order to take advantage of any possible rebounds.