The crypto market has been volatile in the last two days, with many cryptocurrencies, including Ethereum (ETH), battling for survival following reports that Binance would not take over FTX after doing due diligence. In previous weeks, the price of Ethereum (ETH) rose from a low of £1028.74 to a high of £1371.66.
Most altcoins are trending higher, with many reaching gains of more than 200%, including DOGE, which rallied from a low of £0.47 to a high of £0.13, with many expecting another recovery bounce. Nonetheless, the crypto market’s uncertainties cut these expectations short.
The week has appeared clogged with FUD (Fear of Uncertainty and Doubt), causing many altcoins to suffer in price as significant currencies struggle to remain afloat in what seems to be a crypto purge.
Binance rescuing the situation by taking over FTX was welcome news. Nonetheless, after performing their due diligence, Binance opted not to acquire FTX since it had a negative impact on the market, putting the price of ETH on a downward spiral to £943.01.
The price of ETH remained bearish after falling below its weekly low of £943.01; however, the price quickly rebounded and surged back to the high of £1114.47, seeming somewhat safe. To avoid a sell-off, the price of ETH must rise over £1028.74, acting as a demand zone.
The weekly price resistance for ETH is £1243.06. In the daily timeframe, the price of ETH remains significantly strong, trading above £1028.74 support after bouncing off from the region of £943.01, which saw the price of ETH lose its demand zone to the bears.
If the price of ETH breaks above £1243.06, we may see another rise, but the market is still young; time should be given and see how it responds to the market situation.