The digital space is aflame with queries flocking around the comeback of Ethereum’s price. The ETH had fresh gains of over 4.5% on Sep. 12, reaching $1,622, despite nose-diving to a six-month low just the day before. The swell was ignited amid receding fears of a possible FTX liquidation catastrophe. The analysts, however, didn’t feel the burn.
Essentially, the bearish FTX court announcements fail to ripple the Ethereum market. Latest records highlighted FTX’s crypto accumulations at about $3.4 billion, including $1.16 billion in Solana (SOL), $560 million in Bitcoin and $192 million in Ether. The deceased crypto exchange hopes for a court sanction to trade its crypto holdings to reimburse creditors. While some suspect this servicing of $3.4 billion crypto assets could instigate a market crash, Messari analysts remain unperturbed.
According to these analysts, FTX barely poses a threat to the crypto platform as most assets held by FTX are either locked or illiquid. SOL tokens worth $9.2m are unlocked monthly which the market can easily mop up. Hence, the market would likely absorb the sell-pressure from Bitcoin and Ether holdings.
Interestingly, Ethereum’s market ascend on Sep. 12 concurs with an increase in short liquidations across Ether-related derivatives, hence, promoting the ETH price. Additionally, Ether’s daily relative strength index (RSI) dropped below the 30 mark on Sep. 11, indicating an oversold state. Ultimately, this spurred an upsurge of the ETH price from a crucial support level of $1,545.
Technically, Ether’s bounce has positioned its price near to testing its falling wedge’s upper trendline for chances of breaking out. The culmination of this technical setup could potentially boost Ether’s upward trend, with a decisive closure above this trendline possibly leading to a stretch of $1,740 in September, a leap of over 8% from the current prices.
On the contrary, a recoil from the upper trendline risks plummeting the ETH price near the lower trendline around $1,500, which forecasts an 8% dip in September. In the whirlwind of these market turns, prudent research is key to navigating your investment decisions within this volatile digital landscape.
Source: Cointelegraph
