Three Core Reasons Why Ethereum Price Keeps Lagging Behind $1300 Level

As Ether (ETH) price continuously remains below $13k market analysts have discovered three core reasons that the price of Ethereum (ETH) continues to fall below the $13k mark.  It is evident that the bulls are losing ground to the bears. Bears have effectively brought down the price.

Traders are still doubtful that Ether (ETH) will be able to hold its ground in its pursuit to go above and beyond the $13k mark.

Moreover, ETH derivative data predicts a further downfall in the price.

Ether (ETH) which surged between November 28th to Dec 5th, touching the $13k mark, the overall 11.3% gain, till then has decreased by 4.6% in terms of its price. Ether (ETH) has failed to surpass the $13000 resistance level for almost 26 days as of now.

However, investors are optimistic that Ether (ETH) is currently trading at 16% above the low of $1070 on November 22nd.

Furthermore, many crypto traders are also disappointed by the fact that Ether (ETH) is continuously falling below the %13k for the third week in a row.

In addition to that, another heart-wrenching news for investors came recently when CNBC reported that FTX and Alameda’s researchers are being found guilty of misusing the investor’s money.

Moreover, the dynamics further went horrible amid the news that the regulatory authorities in the U.K. are about to impose a ban on all selling cryptocurrencies abroad.

As the collapse of FTX has raised many questions like the transparency of crypto exchanges and how ethically the funds are being used.

The current move by the U. K’s FCA will allow the regulators to continuously monitor how the public fund is being managed and used.

Moreover, the guidelines have also been finalized and will be implemented soon.

Three Reasons Why ETH is Lagging Behind $13K Mark

A crypto trader CashMontee said that the biggest reason the price of ETH is stuck below $12000 is the current aftershocks that are hitting the market amid the FTX collapse. Moreover, the current financial turmoil in the fiat market is also reshaping the ETH’s outlook.

Unlike Bitcoin, ETH is Altcoin and Altcoins are more sensitive to market dynamics. Furthermore, the recent performance of the S&P 500 index decline to its highest low also made it difficult for ETH to surpass the $13k resistance level.

Apart from these, the current regulatory decisions which have been taken by the authorities in order to bring further transparency on how clients’ funds are being maned also halted ETH’s price hike.

Amid the current market volatility, more and more people have left the decentralized crypto exchanges and moved to centralized exchanges.

As the result the demand on Ethereum platforms has declined considerably, meaning ETH has had no other option but to go inflationary in order to generate the funds to support its operations. As the result, ETH has allowed to min more ETH tokens than the tokens being burned.

All these things have happened to ETH within the space of one month time. As far as the future of ETH is concerned, experts are pretty certain that the cryptocurrency market is not going to show any sign of stability till the mid of 2023, making the situation even worse.

Investors Are Afraid

Following all this news investors are afraid that Ether (ETH) can lose support at around the $1200 mark and can fall further. Moreover, the bears are not high in currency trading. But ETH’s derivatives are also shown the presence of strong bears.

Another famous crypto investor ‘CashMontee’ tweeted that now is not the right to invest in ETH. The high selling pressure, high bears, and even greater sensitivity all factors are present at the same time in the market making it extremely difficult for ETH to bounce back.

He also added that investors rather than investing in ETH should look for other Altcoins.

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