Ethereum (ETH) also reportedly faced the same fate as Bitcoin as the news of the FTX crash came in. While the cryptocurrencies including ETH were trying to recover from the crash, FTX filed for bankruptcy.
Another news coming in from FTX created even bigger chaos that continued pushing ETH’s price lower than expected.
By now, it has become a precedent for the major cryptocurrencies to suffer from losses regardless of whether the crypto or network falls within the industry.
Ethereum is Among the Pioneers
Although Ether was launched 7 years after the launch of Bitcoin, still, it rose to become the second-largest cryptocurrency.
It has maintained its position for a long time, which makes it as credible as Bitcoin (BTC). However, being ranked among the top cryptocurrencies comes with a huge cost.
The entire cryptocurrency industry looks up to ETH just like they look to do it for BTC. Over the years, ETH has earned the status of being among the crypto pioneers.
ETH is the second-largest crypto by valuation, suggesting it is the second most invested asset in the crypto market. Whenever there is a crash or a network downtrend, ETH investors start moving their funds.
Such activities can cause major changes to the trading price, volume, and valuation of ETH. Something quite similar happened to ETH as the FTX crash took place.
With FTX filing for bankruptcy, there was too much uncertainty in the crypto market. Therefore, the market either started to sell ETH or move it to secure self-custody solutions.
Ethereum Faced a Major Plunge
Due to the FTX crash, ETH’s price dived tremendously. On November 6, ETH’s price was close to hitting $1,700 but by November 10, ETH’s trading price plummeted all the way down to $1,100.21.
This was an extremely low level and the analysts feared that ETH would end up falling below the $1,000 mark.
Fortunately, the investors had their confidence replenished for Bitcoin, which helped BTC move higher from its lower trading level.
Bitcoin’s rebound helped push the trading price of ETH, which eventually helped it move away from the $1,100 mark.
ETH reportedly started the new week at a trading price lower than $1,200. But it is significantly higher than the lower trading level of $1,100. The new trading day for ETH began at $1,178.43.
However, the intraday trading session witnessed that the trading price of ETH crossed $1,200. It managed to climb all the way up to $1,267.48.
ETH is expected to Surge
A good thing that came out of the recent plunge was the RSI started moving higher as ETH rebounded. At the time of writing, ETH’s RSI has climbed up to 43.00 and is expected to reach the midpoint.
If that happens, ETH would be able to cross the $1,300 mark and reach higher trading targets.
In a matter of 24 hours, ETH’s price has surged 6.33%, which is a strong indication that its rally would continue.