For the past month, the Ethereum price has mostly been driven by fundamental factors, resulting in the crypto dropping by over 20 per cent. In the first week of the month, between November 5 to 9, Ethereum dropped by 35 per cent following news that the FTX crypto exchange was on the verge of collapsing. The drop was partly due to Ethereum’s significant correlation with the industry, which at the time entered an aggressive bearish trend.
Following the collapse of FTX, the entire cryptocurrency industry continued to struggle with recovery, which also impacted Ethereum’s recovery due to correlation. However, in the past two weeks, the Ethereum bearish trend looks to have ended, with the crypto trading in a sideways market. Part of the reason has been due to other fundamental factors, such as investors becoming more cautious with their money, as shown in the crypto fear and greed index, which currently stands at extreme fear.
Ethereum Price Forecast
On the technical side of things, the Ethereum price is looking poised to start a new bullish trend following weeks of trading within a narrow price range of between $1070 and $1270. In the early hours of today’s trading session, the Ethereum price has surged by more than 4 per cent. The intraday trading data from lower timeframes also shows a high likelihood we might continue to see the crypto continuing to rise throughout the session.
Therefore, based on recent price action, I expect Ethereum’s price to break above the $1215 resistance level and possibly trade above the $1400 price level by the end of the year. There is a high likelihood that we might be at the start of another long-term aggressive bullish push that might push Ethereum’s price to pre-FTX crypto exchange collapse levels. However, a drop below the $1150 price level will invalidate my bullish analysis.
Ethereum Daily Chart
