– Ethereum’s native token, Ether, has increased by over 4.5% to reach $1,622 on September 12.
– This increase comes after Ether fell to its lowest level in six months the day before.
– The price recovery is attributed to the receding worries about a potential FTX liquidation.
– FTX court filings reveal that the exchange holds $3.4 billion worth of cryptocurrencies, including Solana (SOL), Bitcoin (BTC), and Ether.
– FTX has requested to sell its crypto holdings to refund creditors, and the court’s response is expected on September 12.
– Researchers argue that FTX’s holdings mostly consist of illiquid and locked assets, which are absorbable by the market.
– The market’s ability to absorb the potential sell-off explains the recovery in Ether prices.
– Short liquidations across Ether-linked derivatives also contributed to the price increase.
– Ether liquidated $8.37 million worth of short positions compared to $1.66 million in long positions on September 12.
– The combination of new buyers and short liquidations pushed up the price of Ether.
– Ether’s daily relative strength index (RSI) dropped below 30 on September 11, signaling an oversold condition.
– ETH’s price bounce originated from an important support level of $1,545.
– Ether’s latest bounce suggests a potential breakout from a falling wedge pattern.
– A breakout above the upper trendline may lead to a price target of $1,740 in September, representing an 8% increase.
– A pullback from the upper trendline could result in a potential 8% decline, with a price target near the lower trendline at $1,500.
Please note that this article does not provide investment advice or recommendations. Conduct your own research before making any investment decisions.
