Ethereum, the second-largest cryptocurrency by market capitalization, has shown remarkable resilience. On September 12, its native token, Ether (ETH), surged to $1,622, a commendable recovery from its six-month low just a day earlier. The Ethereum price rejuvenation can be attributed to the waning concerns over potential FTX liquidations.

FTX liquidation concerns diminish

Recent FTX court filings unveiled a staggering $3.4 billion in cryptocurrency holdings, including a significant portion in Ether. The looming question was whether the approval to sell these assets would trigger a market crash. 

However, Messari, a crypto analytics platform, provided a sigh of relief. They highlighted that most of FTX’s holdings are either illiquid or locked, suggesting the market can comfortably absorb the potential sell-offs. This sentiment was further bolstered as Ether’s price recovered its previous day’s losses.

Technical indicators and market dynamics of Ethereum price today

The Ethereum market on September 12 was characterized by a surge in short liquidations. Specifically, Ether liquidated a whopping $8.37 million worth of short positions. This, coupled with new market entrants, propelled ETH’s price. 

Additionally, the daily relative strength index (RSI) for Ether indicated an “oversold” zone on September 11. However, the subsequent price bounce originated from a pivotal support level of $1,545.

Ethereum oversold price chart

Image source Tradingview ETHUSD Chart

From a technical standpoint, Ethereum’s trajectory is nearing its falling wedge’s upper trendline, signaling a potential breakout. Should Ether breach this trendline decisively, it could aim for the $1,740 mark in September, aligning with its 50-day exponential moving average.

Yet, challenges persist. Ethereum grappled with the $1,620 pivot level and witnessed a decline below $1,600. Key bearish trends have emerged, with resistance hovering around $1,605. While a correction is on the horizon, bears might exert their influence around the $1,600 and $1,620 zones.

Ethereum price september 12 2023

Image source cryptosarus.tech

Ethereum’s long-term outlook

Zooming out, Ethereum’s broader trajectory remains a topic of keen interest. Despite the recent price fluctuations, its 24-hour trading volume underscores the sustained investor interest. The MACD, a momentum indicator, suggests a potential bullish shift. Yet, for a definitive trend reversal, Ethereum must overcome the resistance around $1,650.

Historically, Ethereum soared to over $4,000 in 2021. While 2022 was less favorable, Ethereum’s transition to proof-of-stake and its stronghold in emerging sectors like DeFi and NFTs bode well for its future. However, it faces stiff competition from Layer 1 platforms and the ever-present shadow of regulatory uncertainties.

The broader crypto landscape: Altcoin season?

The 2021 crypto bull market was synonymous with the “altcoin season,” where many alternative cryptocurrencies reaped significant gains. With Bitcoin’s dominance recently dipping below 40%, speculations are rife about another altcoin season in 2023. The debut of new Layer 1 altcoin projects and the sustained NFT craze could be the catalysts. However, the evolving regulatory landscape and a maturing crypto market might temper the fervor of such a season.

Final thought

Ethereum’s recent price trajectory offers both optimism and caution. While technical indicators hint at a potential bullish momentum, external factors, including regulatory dynamics and macroeconomic conditions, will be pivotal. There is also a chance we could see another bout of hype around smaller altcoins, but their gains may be more muted compared to past cycles.

As Ethereum navigates these waters, investors should prioritize thorough research, risk management, and a long-term horizon. The crypto realm is notorious for its volatility, but for those who can weather its storms, the potential for growth remains robust.