Ethereum (ETH) price has been struggling over the start of the new month to break through a major $1,300 resistance level. Bulls are still facing some challenges, though, as bears continue to drive the market down, preventing additional price increases for ETH.
According to the data from CoinMarketcap, Ethereum (ETH), the second largest coin, was last seen at this key level on November 30th, approximately 20 days after. ETH is currently trading at $1,262.88, with a gain of about 4.54% in the past seven days.
Bullish activity, however, was seen above both the $1,250 mark and the 100 hourly simple moving average. As of December 1st, the resistance levels of $1,275 and $1,290 were broken by ETH. It passed through the 76.4% Fibonacci retracement level of the decline from the swing high of $1,296 on December 1st to $1,258.40 on December 6th.
The next significant support is near the $1,250 mark, and the price may test the $1,240 support if it breaks below it. Moreover, any more losses may push the value closer to the $1,200 support.
Ethereum is expected to cost $1,273 at the end of December 2022, with a year-over-year change of 66%. Additionally, the cost will increase by 33% to $1,288 in the first half of 2023 and $1,674 by the end of the year.
Impact Of The FTX debacle On Ethereum
Following the FTX debacle, the crypto market has recently been filled with FUD. The decision of whether to acquire or sell shares when assets fall further is left up to cryptocurrency investors. Like, estimates indicate that Ethereum dropped around 22.6% in a few weeks.
According to the analytics company Glassnode, the volume of NFT transactions on Ethereum has significantly decreased from 22% to 8.3%. At the same time, stablecoin dominance has increased from 10% to 12.5% since the FTX controversy started.
Nevertheless, in a blog post on December 5th, co-founder of Ethereum (ETH) Vitalik Buterin listed the top developments in the Ethereum ecosystem that he was enthusiastic about: blockchain identities, decentralized finance (DeFi), decentralized autonomous organizations (DAOs), hybrid applications and money.
Vitalik Buterin stated in the blog post:
Hence my change in perspective: my excitement about Ethereum is now no longer based in the potential for undiscovered unknowns, but rather in a few specific categories of applications that are proving themselves already, and are only getting stronger.
Many people have been made aware of the value of really decentralized methods of retaining funds as a result of the FTX crash, and now that account abstraction wallets and the ERC-4337 protocol are becoming more popular, they have the chance to develop such methods.
Additionally, transactions are added to the chain considerably more quickly now than they were 3 years ago due to roll-up technology, which is developing swiftly to address scalability.
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