Ethereum (ETH), the cryptocurrency that powers the Ethereum blockchain network with smart contracts, made a strong comeback on Thursday, coinciding with a more risk-averse tone in traditional asset classes (US stocks are up and the US dollar is down).

ETH/USD was recently trading around $1,250, up 0.75% in the previous 24 hours and roughly 2.5% from weekly lows around $1,220.

ETH, on the other hand, is still down 4.5% from its early weekly highs of around $1,300. Since the abrupt demise of major cryptocurrency exchange FTX about a month ago, ether bulls have struggled to regain control.

Before the exchange’s demise, ETH was trading between $1,500 and $1,600. Since the collapse, the market has consistently sold rallies to $1,300.

According to data from the cryptocurrency analytics company Santiment on the realised profit-and-loss of ETH tokens moving on the Ethereum network, traders increased their selling at a loss following the fall of FTX. Selling from allegedly “weak hands” may continue to influence the price of ETH in the near future.

Today’s Ethereum Price

Ethereum Price Prediction

The price of Ethereum is currently auctioning at $1,272 as bulls and bears battle within a coiling congestion zone. Several bearish divergences have been detected on the Relative Strength Index, with traders considering a short.

On smaller time frames, the bulls are still holding support above the 8-day exponential moving average at the time of writing. A 4-hour candlestick close beneath the aforementioned indicator would cause a 4% decline towards the 21-day simple moving average at $1,220. If the market is truly bearish, the bulls should avoid retesting the divergent highs near $1,300.

To play devil’s advocate, a break above $1,300 would trigger a rally towards $1,343 and possibly $1,400. The bullish target zones, like Bitcoin, are established using a Fibonacci retracement tool around the November swing high to swing low.

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