All cryptocurrencies are linked to each other to some degree. When behemoths like Bitcoin and Ethereum start losing their ground, other tokens usually follow suit.
The situation in the crypto market can be characterized by the word “uncertain” which is a good thing considering the shape of the global economy. At the very least, we are not sure that big tokens are on their way to an inevitable collapse.
Discussing ETH without mentioning BTC is close to impossible. Some experts believe that BTC may fall to $12K which is a solid 30.1% drop compared to the current price.
The same drop for ETH would push the price to $890 which is not something out of this world.
The $1,300 resistance level is tough to break
The market attempted to establish a new $1,300 support line three times since the end of November but failed to do so. Since November 11, the price stayed above $1,300 for more than just a couple of hours.
Despite the best efforts from the bulls, the situation remains quite uncertain and causes many huge investors to abstain from buying large bulks of ETH further preventing the next bull run.
The three-day RSI is right in the middle without breaking through the 50 threshold meaning that the market is not yet ready to form any trend.
However, we should not take it as a sign of indecisiveness. Many investors are waiting for the Shanghai hard fork results in the first quarter of 2023 and want to take a step back during Christmas time.
Breaking through the $1,300 barrier is possible, but the cheering will most likely be short-lived.
Speculators and people hunting for quick profit should look toward decentralized exchanges and other companies that benefit from the FTX disaster. Major coins will unlikely move dramatically in the immediate future.
Is it a bad thing that we are stuck?
While many crypto enthusiasts believe that we must break through this imaginary barrier as soon as possible, the long-term prospect of the network does not depend on the current mood of the market.
Many big changes will be rolled out in 2023 and making any predictions before the PoS model is finalized and generates data for complex analysis is simply not possible.
