Analyzing Ether’s Downward Spiral
No matter how much one squints at the price charts, finding a silver lining for Ethereum (ETH) bulls seems like searching for a unicorn in a haystack. With a pitiful 69% plunge year-to-date, ETH is currently dancing around the $1,200 resistance level. Investors may be wondering, is there a way out of this descending channel, or are we simply on a one-way street to desperation?
Regulatory Woes: A Dark Cloud Over Crypto
As if the plummeting prices weren’t enough, regulatory uncertainty is adding weight to the sector’s shoulders. Starling, a digital bank across the pond in the UK, has announced it won’t let customers engage with digital asset exchanges. Their reasoning? The age-old concern that cryptocurrencies are “high risk and heavily used for criminal purposes.” So, what’s next? Are we going to wake up and find crypto in a “celebrity rehab” reality show?
DeFi Drama: Aave’s Not-So-Sweet Short-Selling Saga
In another plot twist of the DeFi world, Aave recently bore the brunt of a short-seller attack aimed at profiting from under-collateralized loans. Remember when DeFi was the golden child of the crypto space? Yeah, those days feel as far away as my New Year’s resolutions. If you missed the headlines, it echoes past exploits like the one seen on the Mango Markets in October. They say history repeats itself, but let’s hope it’s not an endless loop of hacks!
Political Pointers: Elizabeth Warren’s Warnings
And just when you thought it couldn’t get any worse, U.S. Senator Elizabeth Warren has decided to draw parallels between the infamous FTX collapse and the U.S. subprime mortgage crisis of 2008. She warns this should serve as a wake-up call to regulators. So, can we expect stricter regulations soon? Making cryptos akin to getting a driver’s license—filled with tests, fees, and perhaps a lecture on avoiding gullibility?
Options Expiry: The Pressure Is On
With a hefty $1.13 billion Ether monthly options expiry looming on November 25, it’s like waiting for the final exam results you didn’t study for! Despite ETH posting a slim 11% gain between Nov 22-24, bears still seem to be holding a stronger position. Most of the bullish bets are sitting comfortably above $1,400. And if Ether stays beneath $1,250 come expiry day? Well, bears could revel in a $215 million profit while bulls wallow in regret. Let’s hope they have good snack options at their pity party!
