Ethereum Price Prediction with ETH Down 4.5% from Highs – Here’s Where It’s Headed Next
Ethereum (ETH), the cryptocurrency that powers the smart-contract-enabled Ethereum blockchain network, has mounted a decent recovery on Thursday in tandem with a more risk-friendly tone to trade in traditional asset classes (US stocks are up and the US dollar is down).
ETH/USD was last changing hands in the $1,250 area, up 0.75% in the last 24 hours, and is up about 2.5% versus weekly lows in the $1,220 area.
However, ETH is still trading lower by about 4.5% versus its early weekly highs just above $1,300. Ether bulls have struggled to reclaim control since the abrupt collapse of major cryptocurrency exchange FTX roughly one month ago. Prior to the exchange’s implosion, ETH has been trading in the $1,500-$1,600 area. Since the collapse, rallies back to $1,300 have continually been sold by the market.
Data from crypto analytics firm Santiment regarding the realized profit-and-loss of ETH tokens moving on the Ethereum network show a spike in traders selling at a loss in wake of the FTX collapse. Selling from so-called “weak hands” might well continue to weigh on ETH’s price in the near future.
Looking at ETH price over a shorter time horizon, the cryptocurrency appears to be heading lower within the confines of a bearish flag. ETH is currently testing the upper bounds of this flag structure, however, and looks as though it could break higher towards $1,300 once again.
A further recovery in US stock markets and further weakness in the US dollar as the end of the week approaches, perhaps aided if Friday’s US inflation figures come in softer-than-forecast, could be just the catalyst that the Ethereum bulls need. Technical buying may also help in wake of ETH having recently found support at its 21-Day Moving Average and the 23.6%
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