Ethereum is up by a percentage point in today’s trading session, continuing a recovery that started on November 22 following the collapse of the FTX crypto exchange. Today’s price gain is also looking poised to break an important price level of $1,300, an indication that we might be at the start of a new aggressive bullish trend.
Why has Ethereum’s Price Been Struggling?
In November, Ethereum lost 17 per cent of its value. One of the reasons for the drop was due to what happened to the FTX crypto exchange during the start of the month, which saw most crypto projects starting a new bearish trend. Ethereum, which is slightly correlated with the industry, also saw its price getting dragged down by the industry-wide bearish trend.
Investors’ sentiments following the collapse of FTX were also negative and mostly pessimistic. This saw the demand for cryptos such as Ethereum following across the board due to the negative feedback loop. The impact was the price of Ethereum plunging and taking longer to recover.
Ethereum Price Forecast
Based on the current price action, as seen in the chart below, there is a high likelihood that we might be at the start of a new bullish trend. With Ethereum looking likely to push past the $1,300 and possibly continue trading above it, my long-term Ethereum price prediction expects the price to hit the $1,400 price level in the coming trading sessions.
It is highly likely that by the end of the year, the Ethereum price will have hit the $1,500 price level and will be on course to return to its pre-FTX collapse levels. This is supported by fundamental factors such as the recovering crypto industry and investors’ optimism about the crypto return. However, a drop below the $1,250 price level will invalidate my analysis.
Ethereum Daily Chart
