Investors are concerned that Ether could lose the $1,200 support as the price of the second-most popular cryptocurrency is struggling for a decent grip. It rallied 11.3% between November 28 and December 5 and nearly touched the low highs of $1,300. But then, it plunged 4.6%.
Traders are relieved that Ether is trading 16% above the $1,070 low of November 22. However, the grey clouds on Ether darkened after three members of the U.S. Senate asked for information from Silvergate Bank regarding its relationship with the fallen FTX. They questioned reports suggesting that Silvergate facilitated the transfer of FTX customer funds to sister company Alameda Research and gave the bank until December 19 for feedback.
But the bank claimed to be a victim of FTX’s and Alameda Research’s misuse of customer assets and other lapses of judgment. Moreover, the U.K Treasury is finalizing guidelines, as part of the financial services and markets bill, to restrict crypto sales from abroad. These changes could prompt the Financial Conduct Authority (FCA) to look into the crypto companies’ operations in the region.
CashMontee tweeted that the market is too bullish. The analyst believes that crypto will stay up as long as spx does. The monthly level at 1205 will be tagged and there isn’t enough liquidity on Ether to fall back down. CashMontee said his take could be wrong too.