Home » Ethereum price inverted H&S points to a Santa rally

Ethereum price inverted H&S points to a Santa rally

5th Dec 22 4:43 pm

Ethereum price has been in a consolidation phase in the past few days as the crypto market comes to term with the collapse of FTX and Alameda Research. The ETH/USD price was trading at $1,275 on Tuesday, slightly higher than last month’s low of $1,068. It remains about 25% below the highest level in November.

NFT volume rose in November

Ethereum price has been in a strong downward trend in the past few months. The most recent reason for the collapse was the collapse of key companies in the crypto industry like FTX and Alameda Research. In several interviews last week, Sam Bankman-Fried hinted that FTX indeed funneled client funds to Alameda.

The main concern among investors is that other exchanges are also engaging in similar activities. A major issue is among exchanges that have their own tokens and trading operations. To handle these issues, companies like OKX, Crypto.com, and Binance have started unveiling their proof-of-reserves.

At the same time, the collapse of FTX and other centralized entities mean that investors may start embracing quality decentralized crypto exchanges (DEXes). Ethereum has a big market share in the DEX industry, hosting some of the biggest companies in the sector are Uniswap, Balancer, and dYdX. Ethereum will likely benefit if this transition happens.

Find out how to buy Ethereum.

Another potential catalyst after the FTX collapse is that policymakers will likely implement new regulations. These guardrails will be aimed at making the network substantially safer in the future.

Meanwhile, Ethereum’s NFT platforms saw a jump in activity in November. According to CryptoSlam, the total volume of Ethereum’s NFT sales rose to $410 million from the previous $324 million. It was the best month since August when the network handled $502 million.

The next key catalyst for ETH prices in December will be the upcoming policies by the Federal Reserve. Economists expect that the bank will start slowing the size of rate hikes in December. However, according to WSJ, some analysts expect that the Fed will be ready to hike rates above 5% in 2023.

Ethereum price forecast

Turning to the 4H chart, we see that Ethereum prices have made a slow recovery in the past few weeks. Along the way, it has managed to move above the 25-day and 50-day moving averages. It also moved to the 38.2% Fibonacci Retracement level.

At the same time, the coin has formed an inverted head and shoulders (H&S) pattern, which is usually a bullish sign. This bullish breakout will be confirmed if the price moves above the important resistance level at $1,312. If this happens, it will likely rebound to about $1,450 during the Santa Claus Rally.

Leave a Comment

You may also like