Ethereum price commenced the new week below the previously steady support zone of $1,200 as the crypto winter continues. For the remaining weeks of 2022 and into 2023, concerns over a global recession, Fed’s hawkish stance, and contagion risks will remain at play. Even so, developments such as the Ethereum Upgrade are set to boost the altcoin and broader crypto industry.
Ethereum price and the crypto winter
In the past year, cryptocurrencies were in high demand as investors largely embraced the digital assets. In fact, ethereum price rallied to a record high at $4,888.01. However, 2022 marked a reversal of its fortunes. Indeed, it has dropped by close to 70% since the beginning of the year.
The Fed’s aggressive tightening of its monetary policy and concerns over the health of the global economy have been some of the major factors behind the experienced crypto winter. More recently, the FTX-related sell-off added to the pressure.
In the remaining weeks of 2022 and into the new year, investors should expect high volatility to continue shaping the crypto market. This forecast is largely founded on the heightened concerns over a global recession. Besides, a hawkish Fed will remain at play in ethereum price movements and the broader crypto industry.
However, even with these bearish factors, tech developments such as the recent Ethereum Merge will likely support the altcoin in the coming year. Indeed, this upgrade is expected to increase the blockchain’s use cases. From that perspective, the psychological level of $2,000 remains a crucial target for the bulls in the coming months.
Ethereum price prediction
On Friday, ETH/USD dropped below 1,200 for the first time in three weeks. Subsequently, it was range-bound over the weekend; trading below the aforementioned level over the past two sessions.
On a four-hour chart, ethereum price was trading below the 25 and 50-day exponential moving averages. With support from both the fundamentals and technicals, I expect the altcoin to remain under pressure in the new week.
While I am bearish on the crypto, I expect 1150 to be a steady support zone in the short term. On the upside, the 25-day EMA at 1,212.47 will be a resistance level worth watching at the beginning of the week. As the week progresses, the bulls may boost ethereum price to the crucial level of 1,250.