Recently, the price of Ether was able to recover 15% of its value, after the fall due to the collapse of FTX. Is this the start of the long-awaited bull-run on Ethereum?
Ether continues in a corrective move
The fall of FTX has hit the crypto industry hard. The majority of cryptos have fallen, and ether is no exception. Sure enough, its value went down by $600 in the space of five days. Nevertheless, the support at $1080 ensured its role. This allowed ether to regain 15% of its value, in a corrective movement. This is half (50%) of the price range of $1280 and $882. This area also lines up with a long-term downtrend line.
Thus, the probability of the price going back to $1415 is quite strong. Indeed, we can see several bullish signals on the chart in 2 hours. There is in particular the ETE pattern (shoulder-head-shoulder) which is a bullish pattern. The drop in volume also shows the strength of this short-term uptrend. After breaking through the $1220 resistance, the price is currently coming back to retest it. From there, we can envisage a short-term bull-run, driving the price of Ethereum to $1415.
Update on the long-term situation
Over the long term, the price structure of Ethereum is still moving in a downtrend. Indeed, a declining channel from the all-time high has contained the price so far. Thus, it is very likely that this short-term rise in Ethereum is not really a bull-run. In addition, the drop in the week of November 7 was accompanied by a large volume. This suggests that the current rise is only corrective or retracement movements.
To confirm a long-term bull-run, Ethereum buyers must clear several hurdles. The nearest resistance is found at $1415. This is a key level that also lines up with the middle line of the bullish channel. If the price breaks through the $1600 and $1800 zone, it will likely signal the start of the long-awaited bull-run.
Receive a digest of news in the world of cryptocurrencies by subscribing to our new service of daily and weekly so you don’t miss any of the essential Tremplin.io!
