What’s Next For Ether After Its Latest Price Movements?

Ether prices have had a turbulent couple of weeks, dropping sharply as global markets responded to the FTX saga but then bouncing back and experiencing reduced volatility over the last several days.

The digital currency fell to roughly $1,100 on November 9, down more than 30% from the intramonth high of more than $1,650 it reached on November 4, CoinDesk data shows.

The token, which is the native digital asset of the Ethereum network, then recovered, surpassing $1,330 on November 10, additional CoinDesk figures reveal.

[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]

Since then, the digital asset has traded within a relatively modest range, fluctuating primarily between $1,180 and $1,300.

Going forward, analysts weighed in on the key developments that investors should monitor.

Ether’s ‘Strange Position’

Tim Enneking, managing director of Digital Capital Management, spoke to the unique situation that ether is in, as it benefits from the recent merge and continues to face headwinds from the ongoing turmoil in the cryptocurrency space, which has seen once-prominent companies like FTX and Celsius file for bankruptcy protection.

While Celsisus initiated bankruptcy proceedings in July, FTX recently took this step more recently, filing for Chapter 11 bankruptcy protection within the last week.

“Ether is in a strange position,” said Enneking.

“On the one hand, just a couple months ago it completed a technological tour de force that I submit has been rarely equaled: effecting the switch from Proof of Work to Proof of Stake with nary a hiccup,” progress he described as “Just amazing!”

“In addition to that amazing feat, for the first time it became possible to calculate a DCF (discounted cash flow) on certain ETH investments (in particular, validators and other infrastructure roles),” Enneking added.

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“While ETH wasn’t not directly involved in FTX and its fallout (or Celsius and its), it has certainly paid the price,” he noted.

Crucial Technical Levels

Enneking offered some technical analysis, singling out the $1,000 level as providing key support for ether.

“Early last week, it was trading at almost $1,700. Since then, it’s bounced off of $1k and is fighting to hold on,” he stated.

Brett Sifling, an investment advisor for Gerber Kawasaki Wealth & Investment Management, spoke to to the exact same price, identifying it as crucial.

“The $1,000 support level is one to watch, as it was the year-to-date bottom back in June and July,” said Sifling.

“A break of that could suggest further downside to the $830 support, which was an old resistance point back in 2018,” he added.

Enneking noted that if the $1,000 price support “doesn’t hold, we’ll probably see an ‘8’ handle, although also probably not for long. I suspect it will hold,” he predicted.

Should the digital currency rise in value, it “could face resistance at the $1,650, $1,800 and $2,000 levels,” said Sifling.

Enneking outlined similar price points.

“Resistance is now $1.7k – not just because of last week’s move, but because of repeatedly hitting that level (from both directions) this year,” he stated.

“Then, of course, $2k will be hard to break through again. It should within a couple of months, but all bets are off until the limits of the FTX contagion” “are better determined.”

Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.