Ethereum Plugs 11-Week Bleed, why $1,500 May Be On The Horizon


Ethereum closed the red week after the red week for the past 11 weeks. It is the longest red streak ever recorded in the history of cryptocurrency, and thus, has had major implications for the digital asset. By dropping, it was one of the hardest hit coins, underperforming compared to other cryptocurrencies at this time. However, the digital asset has now closed its first weekly green candle in three months and things are getting better.

Better days are coming

With this redemption, interest in the digital asset has been renewed. Combined with the fact that the digital asset is now trading above its 50-day moving average, it has now consolidated a short-term uptrend. Although activity on the network has decreased, it is still high enough to renew confidence in the heart of investors.

Related reading | Market Declines in Great Fear as Bitcoin Struggles to Hold $20,000

However, there are still things that threaten the price of the cryptocurrency in another bullish rally. The centenary disaster was one of the main reasons behind the dip below $1,000 and it remains a very real threat. A lending protocol that found itself in trouble due to some bad deals is still at risk of being liquidated, and rumors persist that Celsius is planning to file for bankruptcy, meaning users will not be able to get their tokens back.

Ethereum price chart from TradingView.com

ETH Price Sees First Green Weekly Close After Three Months | source: ETHUSD on TradingView.com

In addition, the bankruptcy of Three Arrows Capital severely affected the market but there is still more to come. This is because it is the leading crypto fund and as such has had a hand in a large number of projects in the space, especially DeFi, most of which will be greatly affected by the 3AC bankruptcy.

Ethereum to 1500 dollars

At the moment, the price of the digital asset is still under $1,200, but there are some things rumored in the market that are likely to fuel the price hike. One of them is FTX’s supposed acquisition of trading platform Robinhood.

Now, Robinhood is one of the most popular platforms when it comes to cryptocurrency trading. However, he has infuriated the community in the past due to his practices. As such, if it is acquired by FTX, a trusted crypto exchange, this means that FTX will bring Robinhood’s massive user base of over 22 million to the broader crypto community.

Related reading | Ethereum fees touch monthly lows as transaction volumes drop

There’s nothing specific about the acquisition yet, but the sentiment among investors about it has been good so far. The rally resulting from such an acquisition could boost Ethereum’s growth by more than 20% and that would put the digital asset above the $1500 level once again.

ETH is trading at $1,221 at this time. It is still the second largest cryptocurrency in the space with a market capitalization of $148 billion.

Featured image from CoinMarketCap, chart from TradingView.com

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