Since the beginning of November, Ethereum has closed in red every week. This is the longest ever red streak in cryptocurrency history, and it has significant implications for digital assets. It has suffered a severe decline and performed poorly in comparison to other cryptocurrency at the time. The digital asset is now closing its third weekly green candle after three months, and things look up.
Better Days Ahead
This recovery brought renewed interest in digital assets. It has established a bull trend short-term due to the fact it trades above its 50 day moving average. Investors can still have faith in the network’s activity, even though it is less frequent.
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There are some things that could still impact the value of cryptocurrency, if it goes on a bull rally. There is still a real danger that the Celsius fiasco, which was one of the key reasons for the drop below $1,000, will continue to be a factor. Celsius’s lending protocol, which is currently in an extremely tight spot because of some poor trades, remains vulnerable to liquidation. There are rumors that Celsius intends to file for bankruptcy. Users would then not be eligible to receive their tokens back.
The ETH price has seen its first green weekly close in three months. Source: TradingView.com.| Source: ETHUSD on TradingView.com
Additionally, Three Arrows Capital’s insolvency had hit the market hard but there is still more to come. It is the largest crypto fund, and had a hand in many projects, particularly DeFi. The majority would be greatly affected by 3AC’s insolvency.
Ethereum Up to $1,500
The current price of the digital asset remains below $1,200. However, there are rumors that the market will promote a price rise. One of these is FTX’s supposed acquisition of the trading platform, Robinhood.
Robinhood is a popular platform for trading cryptocurrency. Its practices have drawn criticism from the crypto community. As such, if it were to be acquired by FTX, a trusted crypto exchange, it would mean that FTX would be bringing Robinhood’s massive user base of more than 22 million to the broader crypto community.
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Although there is not much information yet about the acquisition, investors are positive. An Ethereum rally could result in Ethereum rising by more than 20%, which would push it above $1500.
At the time this wring, ETH was trading at $1.221 It’s the second largest cryptocurrency, with $148 billion in market capital.
Featured image taken from CoinMarketCap. Chart courtesy of TradingView.com
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