The Ethereum (ETH) prices have recovered spectacularly following concerning drops on September 11. Even though sellers have the upper hand, rejecting lower lows on September 12 might be the anchor for the next leg up.
Most importantly, yesterday’s gains might mark the previous bar as climactic, marking the end of the recent leg down.
ETF And BTC Recovery Might Support ETH, Hacks A Rising Concern
Fundamental factors might support prices in the short to medium term as we advance.
Considering their high correlation, most analysts expect ETH prices to be buoyed by a recovery in BTC. Beyond this, if the United States Securities and Exchange Commission (SEC) approves an Ethereum Spot exchange-traded fund (ETF), the coin might find support.
While Ethereum anchors decentralized finance (DeFi), non-fungible tokens (NFTs), and more, there are rising concerns about theft and hacking.
Several high-profile protocols have fallen victim to the hackings, just like Curve Finance, a prominent decentralized exchange (DEX), threatening to worsen the already dire state of DeFi. CRV prices have yet to recover, with Kaiko’s data showing that trading volumes are down by over 97% since late July.
📈#CRV volume has fallen from a recent daily high of $300mn to just $7mn on September 7, nearly all of which took place on centralized exchanges. pic.twitter.com/ZIcMpwcZ9O
— Kaiko (@KaikoData) September 12, 2023
With more hacks, there will be apathy, which impacts activity, subsequently lowering the demand for ETH, the currency used solely to pay gas fees.
This week, Vitalik’s X account was compromised, and a hacker posted a corrupted link pointing to a scam NFT website. Eventually, the hacker stole over $691,000 from victims who clicked the link.
WARNING! I JUST LOST A FEW PUNKS!
DON'T INTERACT! pic.twitter.com/lS4VvlHdVa
— luckytimes.eth beautifuldaytobealive.eth (@BokkyPooBah) September 9, 2023
Ethereum (ETH) Price Analysis
ETH is up 4% from this week’s lows but remains technically under pressure.
Even though the losses of September 11 were reversed, the path of least resistance remains southwards. Notably, prices remain below the $1,650 and $1,750 resistance levels, with the bounce of September 12 having relatively low trading volumes.
As such, unless there is a comprehensive breakout above the immediate liquidation level, bears have the upper hand from an effort-versus-result perspective.
Aggressive analysts might look to sell on every high, targeting September 11 lows at $1,530. Any fresh dump, forcing the coin below $1,500, might trigger more losses as ETH may retest $1,430 or June 2023 lows in a bear trend continuation formation aligning with losses of August 17.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
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