The Ethereum price is currently in the red, along with the wider crypto markets, as the market continues to deal with the knock-on effects of the FTX collapse. However, recent price action suggests that bulls are looking for a 30% move to the upside.
Binance and FTX’s SBF to Face House Committee
The House Financial Services Committee has called upon Sam Bankman-Fried (SBF) and Binance to appear before it in December amid investigations into what caused the demise of one of the largest cryptocurrency exchanges.
Rep. Maxine Waters (D-Calif.), the chair of the House Financial Services Committee and Rep. Patrick McHenry (R-N.C.), a renowned member of the Financial Services Committee, hinted on Wednesday that the hearing would seek to determine what triggered the sudden implosion of FTX, and related firm Alameda among others. The House Committee will also look to unearth the “broader consequences for the digital asset ecosystem.” The official statement reads,
“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,”
Binance, the largest exchange by daily traded volume, will also be grilled by the House Committee. Questions are arising about whether Binance contributed to the liquidity crisis at FTX when it announced via Twitter the decision to liquidate up to $580 million in FTT (the token native of FTX).
The United States and Bahamas authorities have launched investigations into FTX and related companies for the part they could have played in one of the crypto market’s worst crashes that saw investors lose billions of dollars.
Ethereum Prediction: ETH bleeds, but for how long?
The Ethereum price exchanges hands at $1,212 after bowing to selling pressure at $1,350. The push for support at $1,070 followed the newly announced Industry Recovery Fund by Binance. Investors welcome the move by Changpeng Zhao (CZ) to help businesses negatively impacted by the FTX implosion.
The Moving Average Convergence Divergence (MACD) indicator reveals that the bears are currently in control, as seen by the back-to-back red bars.
There is huge support for Ethereum at $1,200. If ETH reaches there, sidelined investors may jump in, pushing prices up 30% toward $1,600 if market conditions improve.
Ethereum Is in The Buy Zone, On-chain Analysis Shows
According to the Market Value Realized Value (MVRV) profit/loss model by Santiment, the second-largest cryptocurrency is back in the buy zone. The MVRV has a reading of -5.73, significantly below the mean line at 1.
Investors consider crypto assets undervalued when the ratio falls into the negative region.
The MVRV model tracks the profit/loss of the holders of ETH by comparing the price at which the tokens they hold move last with their current market value. Readings above 1 imply the asset is overvalued, thus prompting selling activities among investors.
The Supply Distribution metric shows that some investors are already buying the lower-priced Ether. The chart below shows the number of addresses holding between 10,000 and 100,000 ETH coins has grown to 1,182 from a monthly low of 1,152. It may be the case that investors who sold Ethereum as the FTX crash wrecked the market are now buying back the same tokens.
Ethereum Alternative Offering Quicker Gains
Traders who are looking for quicker gains have started looking into presales which have done particularly well this year, despite the bear market. One of the leading presales has been outlined below.
Dash 2 Trade (D2T)
Dash 2 Trade is a world-class crypto analytics and social trading platform, making it easier for investors to make informed decisions using actionable market data. At the center of the Dash 2 Trade ecosystem is D2T – an ERC-20 token built on the Ethereum blockchain.
Think of Dash 2 Trade as an all-in-one terminal where investors can access accurate and timely market data to test trading strategies that allow them to take advantage of the opportunities in the market.
D2T currently sells for 0.0513 USDT, but this price will go up to 0.0533 USDT in the next presale stage.
Visit Dash 2 Trade Presale Now.
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