How low can Ethereum drop?

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ETH price has not been left behind in the ongoing cryptocurrency meltdown. Ethereum crashed to a low of $1,136, which was the lowest level since July last year. The coin has crashed by more than 27% from the highest level this year, bringing the year-to-date losses to over 60%.

Ethereum price prediction: will ETH benefit from FTX crash?

Ethereum price has been in a strong bearish trend in the past few months as cryptocurrencies crash. This week’s sell-off was triggered by the crash of FTX, the third-biggest crypto exchange in the world.

Most cryptocurrencies have plunged as investors predict that this could be the industry’s Lehman moment. As a result, many investors have exited their crypto positions.

Still, a closer look at the situation shows that Ethereum could actually benefit from this crash. For one, in the past few months, we have seen the collapse of several centralized exchanges (CEX), including Voyager Digital, Celsius, Vauld, and BlockFi.

In the same period, most DeFi exchanges like Uniswap, PancakeSwap, and SushiSwap have continued doing well. This is notable since Ethereum hosts some of the biggest DEXes in the world like Uniswap, Curve, SushiSwap, and dYdX among others.

Analysts believe that DEXes are better than CEXes for several reasons. First, they are open-source in nature, meaning that anyone can manipulate the code. Second, DEXes are transparent, meaning that anyone can track the flow of coins in their ecosystems.

Third, they are decentralized in nature, meaning that insiders don’t have more significant powers than other DAO members. 

Therefore, there is a likelihood that DEXes will continue thriving in the long term. And if this happens, Ethereum will benefit since it is the biggest player in the industry.

Nonetheless, for now, Ethereum and other crypto prices will likely continue falling as concerns about the industry remain.

Ethereum price prediction: technical analysis

The daily chart shows that ETH price has been in a strong bearish trend in the past few months. The sell-off accelerated this week after the collapse of FTX, As it dropped, it managed to move below the important support level at $1,236, which was the lowest level in October.

It has moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has moved below the oversold level. Therefore, Ethereum price will likely continue falling as sellers target the key support level at $1,000.

How to buy Ethereum

Binance

Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.

Buy ETH with Binance today

FP Markets

FP Markets combines metals, indices connectivity and award-winning execution speed with institutional-grade liquidity to provide traders consistently tighter spreads and unparalleled trading conditions. FP Markets offers Forex, Equities, Commodities, Cryptocurrency, Futures and Index CFDs all from one account.

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