Ethereum Reclaims Demand Zone As Market Turmoil Heats Up; Is $500 Possible?

•  ETH’s price loses its $1,200 demand zone in the early hours as Binance rejects FTX takeover, with the price responding with a bounce from its daily low. 
•  ETH’s price continues to look bearish with the market’s current state, as things look uncertain for most traders and investors. 
• ETH’s price bounces from a low of $1,100 on the daily timeframes as the price aims for the 50 and 200 Exponential Moving Averages (EMA)

In the last two days, the crypto market has been erratic, with the price of many altcoins, including Ethereum (ETH), battling for survival after the news that Binance would not be taking over FTX after conducting due diligence. Previous weeks saw the price of Ethereum (ETH) perform well, rallying from a low of $1,200 to a high of $1,600. Most altcoins trend higher as many produced gains of over 200%, including DOGE rallying from a region of $0.55 to a high of $0.15, with many hoping for more recovery bounce. Still, these expectations were cut short by the uncertainty surrounding the crypto market. (Data from Binance)

The previous week saw many altcoins produced over 200% gains over the past 7 days of breaking out of their range-bound movement, as many believe more hope is returning to the crypto space.

The new week has yet to look like the previous as the week has looked choked with FUD (Fear of uncertainty and doubt), leading to many altcoins being affected negatively in price as major coins have been struggling to stay afloat from what looks like a crypto purge.

The news of Binance rescuing the situation by taking over FTX was good. Still, after conducting their due diligence, Binance decided it would not take over FTX as this has affected the market negatively, sending the price of ETH on a spiral movement to $1,100.

The price of ETH continued to look bearish after breaking below its weekly low of $1,100; the price swiftly bounced off this region as price rallied back to the high of $1,300, looking somewhat safe. The price of ETH needs to rally away from $1,200, acting as a demand zone to remain safe from sell-off. 

Weekly resistance for the price of ETH – $1,450.

Weekly support for the price of ETH – $1,100.

The price of ETH remains considerably strong in the daily timeframe as the price trades above $1,200 support after bouncing off from the region of $1,100, which saw the price of ETH losing its demand zone to the bears. 

If the price of ETH breaks above $1,450, we could see more rally for ETH price, but the market is still early; we would want to give it time and watch how it responds to the market situation.

Daily resistance for the ETH price – $1,450.

Daily support for the ETH price – $1,200.