The Ethereum price continues to trade within a narrow price range of $1150 and $1250, following the November crash that saw its value plummet by almost 20 percent. Today, its value is up by less than a percentage point, extending a bullish trend of the past two days.
Will Ethereum Recover in 2023?
Ethereum’s 2022 performance was mostly driven by events that were out of its control, which included the collapse of Terra Luna, 3AC & celsius, and FTX/Alamada. All these events resulted in the entire cryptocurrency market going into aggressive bearish trends that dragged the price of Ethereum down.
Therefore, for most investors, things are not looking bad for Ethereum, considering what transpired last year. However, these events also offer us a snapshot of what to expect throughout the year. There is a high chance that we might continue to see other cryptocurrency projects filing for bankruptcy in 2023, which, as seen in 2022, has resulted in the entire cryptocurrency industry going into a bearish trend.
This year will also see likely see worsening macroeconomic factors, such as inflation and rising rates, continue to affect the entire cryptocurrency market. The result will be a continued industry-wide bear market, which will affect Ethereum due to its significant correlation.
However, there are still other factors to be optimistic about in 2023, including possible recovery of the industry, investors’ confidence of the industry going up, and Ethereum Merge continued traction, which will see Ethereum prices starting to go up.
Looking at the chart, the recent price action also shows a possible move to the upside for the next few trading sessions. This is confirmed by the Williams Alligator, which is currently showing early signs of price reversal to the upside.
Therefore, for the next few weeks, I expect the Ethereum price to continue trading upward, with a possible trade above the $1250 resistance level. There is a very high likelihood that, in the long term, we might see Ethereum trade above the $1,300 price level. However, my stop loss will be at $1150, a price level that will invalidate my bullish analysis.