Ethereum is roughly 15 percent up from November lows. While ETH is diverging, printing higher highs from the lower BB and slowing down bears, the overall trend is bearish.
There are several technical factors for this overview. Of note, ETH sellers are yet to reverse the losses of November 9.
At the same time, despite general confidence, trading volumes of the past few days have been relatively low, signaling lower demand.
Volume is especially a factor in determining participation considering the sharp spike in participation early last week when ETH slumped to lower rates. Accompanying trading volumes were high, pointing to fear and traders scrambling for the exits.
The FTX contagion is still being felt.
Several crypto venture funds, including exchanges, have been felt—the most prominent being AAX Exchange, which was forced to halt withdrawals.
There were rumors that Crypto.com might be a victim. CEO Kris Marszalek came out strongly, reassuring the community that their finances are rock solid.
Speculations were rife that Crypto.com was facing financial challenges after accidentally sending 320,000 ETH or roughly $410 million to Gate.io, a cryptocurrency exchange. Kris clarified:
“It was supposed to be a move to a new cold storage address, but was sent to a whitelisted external exchange address. We worked with [the] Gate team, and the funds were subsequently returned to our cold storage. New processes and features were implemented to prevent this from reoccurring.”
Ethereum Price Analysis
Ethereum prices are steady when writing, reading from the performance in the daily chart. Presently, prices are moving within a tight trade range, within the November 9 bear bar, signaling weakness.
Even though the November 10 bar reversed losses, reinvigorating buyers, there has yet to be follow-through. Subsequently, ETH traders closely watch how prices will react at $1.35k, the immediate resistance level.
A close above this line may be the basis for a lift-off towards $1.7k, November 2022 highs. As it is, sellers can unload on every attempt higher, targeting November 2022 lows at around $1.1k. This preview holds provided ETH is below $1.35k.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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