Ethereum price bounces off support at $1,074 with a 7.4% rally in mid-week trading. This fresh bullish wave is moving across the crypto market days after the FTX drainer who made away $600 million plunged crypto assets into another tailspin.
The largest smart contracts token is exchanging hands at $1,167 during Wednesday’s European session. It has printed two green candlesticks and appears technically strong to close the gap to $2,000.
Investors Remain Cautious Over Possible FTX Contagion
Ethereum and Bitcoin are back in the green despite traders exercising caution due to the fear of the FTX contagion. According to Vijay Ayyar, Luno’s vice president of corporate development and international, the bullish wave in the crypto market can be attributed to the extreme oversold conditions witnessed over the last three weeks.
However, a significant recovery could be a long shot because confidence in the market is still lacking. Ayyar believes that “we could be seeing a bearish bounce” with resistance slowing down movement to $2,000.
Markets in the crypto industry have been on the edge since the FTX crisis started in the first week of November. According to recent bankruptcy filings, the once $32 billion crypto empire has a meager $1.24 billion cash reserves. To make matters worse, the FTX Group has $3.1 billion in liabilities and slightly over 1 million creditors.
“In general, markets have been nervous post-FTX, expecting further contagion from parties related to FTX,” Ayyar said.
Ethereum Price Prediction: Where is ETH Heading Amid the FTX Crisis
Ethereum price has been treading on shaky ground after the FTX drainer moved funds stolen from FTX in ETH. The hacker started by consolidating the funds into a single wallet before swapping over $72 million from ETH to BTC via the renBTC Gateway. This platform allows Bitcoin to be used on the Ethereum blockchain. If this selling continues, overhead pressure will stifle the recovery.
The daily time frame chart brings to light a buy signal presented by the TD Sequential indicator. This signal manifests in a red nine candlestick, implying that sellers are exhausted, and it’s time for buyers to take control.
If Ethereum sustains its bullish outlook in the current and hopefully the next session, the Moving Average Convergence Divergence (MACD) indicator will send another buy signal to cement the bulls’ return to the market.
However, traders must wait for the 12-day Exponential Moving Average (EMA) (in blue) to cross above the 26-day EMA (in brown) before triggering their buy orders. Movement of the MACD into the positive region (above the mean line at 0.00) will be another cue for a sustainable recovery.
Ethereum price looks forward to a 61.8% rebound north of the primary support at $1,074. Traders can start booking profits at the 23.6% Fibonacci level, as highlighted around $1,298 and at the 100-day EMA (in blue), currently holding at $1,427.
The presence of many sellers between $1,199 and $1,232 may put brakes on the move to $2,000. Insight from IntoTheBlock’s IOMAP model reveals that 1.45 million addresses previously purchased 8.33 million ETH in that range. As the crypto recovers, some investors could close their positions at their respective breakeven points, resulting in increased overhead pressure.
Promising Presales to Consider for Portfolio Diversification
The FTX contagion has left crypto markets to hang on a loose thread. Ethereum price presents a bullish outlook aiming for $2,000, but traders are anxious and wondering if rebounds are sustainable.
For that reason, interested investors can look into new projects that can return above-average gains in the short term. Most of these tokens have their presales underway, boasting solid fundamentals ahead of their initial listing on exchanges.
Dash 2 Trade (D2T)
Dash 2 Trade is a new cryptocurrency project, providing investors with world-class crypto analytics that make navigating the market easier. With these analytics, traders can build and test strategies on a simplified platform. Moreover, Dash 2 Trade offers trading signals with accurate buy/sell opportunities for anyone to make the most out of the market.
D2T is an ERC-20 token on the Ethereum Network dedicated to powering the Dash 2 Trade platform. This token allows access to crypto analytics, signals and social trading features needed to excel in the market.
RobotEra is the best metaverse crypto project to buy today because of its close similarities to the well-known Sandbox crypto project. The protocol will bring up a metaverse with various assets as part of the world.
The RobotEra team has started by selling the native token TARO, which will power the ecosystem’s economy. In subsequent steps, the best metaverse crypto project will allow users to buy land and Robot characters as NFTs.
TARO’s presale is underway and selling for $0.020. Within the first three weeks of the presale, the team has raised over $176,000. The price will, however, increase to $0.025 in the next stage.
RIA powers the Calvaria card game formally referred to as Calvaria: Duels of Eternity and is another project currently in the presale stages.
RIA might be the next major cryptocurrency to buy for blockchain gaming enthusiasts. This digital asset offers several promising possibilities that are raising interest among investors.
The game, which takes place in a metaverse with an afterlife theme, aims to aid traders in buying non-fungible token (NFT) trading cards.
Players are tasked with building strategies to help them win these battles directly. RIA is the token that makes NFT purchases possible through an in-app NFT marketplace. Staking is also supported, meaning users can earn rewards by holding RIA.