ETH, the largest altcoin by market value, currently maintains its leadership position among smart contract platforms. Despite the launch of many Ethereum killers in the market, they have not been able to shake Ethereum’s throne, despite being faster and cheaper. Today, many significant tests are being conducted on this network, including the issuance of tokenized assets by governments.
Ethereum (ETH)
Amid concerns about FTX’s asset liquidations, the BTC price dropped below $25,000. The ETH coin price also dropped to the $1,500 region yesterday. Some decided to reduce their risks, believing that approval for the sale of a $3.4 billion crypto asset could lead to a market collapse, triggering these extreme sales.
However, researchers at Messari argue that FTX’s asset liquidations will not have as negative an impact on the markets as feared. According to experts, a significant portion of FTX’s assets consist of illiquid and locked assets. For example, only $9.2 million worth of SOL is unlocked each month, which can be absorbed by the market.
FTX has $353 million worth of BTC assets, and analysts say this amount accounts for 1% of the weekly volume. This means that the market will absorb a significant portion of the selling pressure on Bitcoin and Ether. The recent price recovery seems to have been triggered by the clarification of these details.
ETH Coin Analysis
RSI fell below 30, entering the oversold zone, on September 11. This type of movement usually triggers buyers. Moreover, the critical support level of $1,545 for ETH Coin was successfully defended. If everything goes well, the ETH price may test the resistance line of the falling wedge.
Falling wedges are reversal patterns characterized by the consolidation of the price between two descending converging trendlines. As a result of this technical setup, a decisive close above the upper trendline of Ether could pave the way for a move towards $1,740. However, a downside break could bring a test of the lower trendline at $1,500.
Over the next 7 days, we will witness many important developments that will impact the price. From tomorrow’s inflation data to the September 20 Fed meeting, there will be many developments that could affect the overall market sentiment.
