Over the past two weeks, Ethereum enjoyed much attention, with media coverage about FTX’s hacker dumping his holdings on the market.
Some of the recent activities in “FTX accounts drainers” - based on information from Etherscan. FTX accounts drainer 1 - 0x59ABf3837Fa962d6853b4Cc0a19513AA031fd32b
12th November 2022 - Ethereum balance = 13 205 ($16.5 million) 15th November 2022 - Ethereum balance = 1.47 ($1844)
Ethereum dropped more than 11% from Sunday to Monday before erasing some losses. A decline stopped slightly above the support level at 1071.50$, and since then, the price action has remained choppy.
Apart from Bitcoin, ETHUSD did not constitute a new low for the year. Though it is nothing surprising if we consider how much better (seemingly) it has performed. That, however, does not change our view.
We still hold a bearish stance and believe the bottom is not set in. As we noted over the summer (and several times thereafter), the attractive price for shorting is between 1 500$ and 1 600$ (or higher); however, from the current level taking a short position represents much more risk. With that let out there, we maintain our price targets at 1 000$ and 900$.
Technical analysis - daily time frame RSI is neutral. Stochastic points to the upside but stays in the bearish zone. MACD is flattening. DM+ and DM- are bearish. Overall, the daily time frame is bearish.
Illustration 1.01 Illustration 1.01 shows the daily chart of ETHUSD and simple support/resistance levels.
Technical analysis - weekly time frame MACD is neutral. Stochastic is bearish. RSI is slightly bearish/neutral. DM+ and DM- are stay bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.