Ethereum Bulls Face Resistance at 200-Weekly EMA
The price of Ethereum is currently facing a potential rejection from the 200-weekly Exponential Moving Average (EMA), which is acting as a resistance level. If the price continues to decline below this support-turned-resistance, it could put pressure on the next buyer congestion area at $1,600. In order to prevent further bearishness, bulls need to act quickly and keep sellers away from this area.
Fed Chair’s Remarks Cause Concern in Crypto Market
The recent decision by the Federal Open Market Committee (FOMC) to halt interest rate hikes for September seemed to have been priced in by the crypto market. However, investors are now worried about comments made by Fed Chair Jerome Powell, who suggested the need for more rate hikes before the year ends. The market is waiting for convincing evidence of progress before reaching any conclusions.
Will Ethereum Bulls Survive?
Although Ethereum’s price recently moved above the 200-week EMA, signaling bullish control, it is now acting as a resistance level. To avoid a larger sell-off, bulls must strengthen their position and prevent further declines. The Moving Average Convergence Divergence (MACD) indicator is still giving a sell signal, indicating that a rally is unlikely unless the blue MACD line crosses above the red signal line.
If the immediate support at $1,600 holds, there is still hope for Ethereum bulls to recover and continue the uptrend. However, until key levels such as the 200-day EMA, 21-week EMA, and 100-week EMA are reclaimed, a true bull market rally above $2,000 may not be possible.
Ethereum Futures ETF Approval Could Drive Rally
Grayscale Investments has filed a proposal with the SEC for a futures-based Ethereum exchange-traded fund (ETF). This is the second filing by Grayscale, as other companies also express interest in such ETFs. If the SEC approves these proposals in October, it could signal a major rally for Ethereum. However, it is still uncertain whether the SEC will greenlight these ETFs, considering its past actions against the crypto market.
Until a market-changing event like the approval of a futures ETH ETF occurs, Ethereum price may continue to struggle with maintaining the uptrend. Such an event could trigger significant interest in the token and lead to a major rally.
Hot Take: Ethereum Bulls Face Resistance and Await ETF Approval
Ethereum bulls are currently facing resistance at the 200-weekly EMA, which could worsen the bearish situation if not overcome. The recent remarks by the Fed Chair have also caused concern in the crypto market. However, there is still hope for bulls to regain control and continue the uptrend if they can hold the support at $1,600. Additionally, the approval of a futures-based ETH ETF could be a game-changer for Ethereum’s price. Until then, bulls must stay resilient and monitor market developments closely.
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