Ethereum Price Reaches $1,750 Before Retracing
The price of Ethereum (ETH) surged to $1,750 on Monday, reaching a level not seen since mid-August. The rise in price was attributed to the anticipation of the US Securities and Exchange Commission (SEC) approving Ether futures exchange-traded funds (ETFs). However, the upward trend was short-lived as ETH faced resistance and dropped back down to the $1,600 range. Currently trading at $1,645, it is crucial for bulls to support Ethereum to prevent another dip below $1,600.
Potential for Explosive Q4 2023
Historically, the crypto market tends to perform well in the last quarter of each year. Analysts and traders are optimistic about a bullish October, known as “Uptober.” Altcoin Sherpa predicts an explosive Q4 or early Q1 for Ethereum and other altcoins. Looking at the ETHBTC price chart, Altcoin Sherpa expects a strong bounce back for Ethereum.
Fundamental Strength of Ethereum
An on-chain analytics platform called Santiment reported that a significant amount of ETH was moved off exchanges on Wednesday, resulting in the lowest supply of ETH on exchanges in five years. This indicates that Ethereum is fundamentally strong and has the potential to rally if given the opportunity.
Search for Higher Support
Since being rejected from $1,750 earlier in the week, Ethereum has been searching for support to control its downside. The 21-day Exponential Moving Average (EMA) at $1,641 is currently serving as immediate support. If this level fails to hold, the search for support may extend to $1,600. Traders should monitor the Relative Strength Index (RSI) as it tests support at the midline. Shorting Ether may be considered if the RSI continues to drop toward the oversold area below 30.
On the upside, a break above resistance at $1,750 would indicate that Ethereum is holding above key moving averages and could encourage traders to consider longing ETH for a larger breakout to $2,000.
Hot Take: Ethereum’s Potential for Growth
Ethereum has experienced a surge in price recently, reaching levels not seen since mid-August. The market is eagerly awaiting approval of Ether futures exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). Despite facing resistance and retracing to the $1,600 range, there is potential for Ethereum to rally and reach new highs. Analysts predict an explosive Q4 or early Q1 for Ethereum and other altcoins. Additionally, on-chain data shows that Ethereum’s fundamentals are strong, with a significant amount of ETH being moved off exchanges. Traders should closely monitor support levels and key moving averages to gauge Ethereum’s future price movements.
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