ETH Price Shows Signs of Trend Reversal
The price of Ethereum (ETH) has been stuck between support at $1,600 and resistance at $1,700, but there are indications of an upcoming trend reversal. After a failed attempt to maintain a bullish outlook, ETH retraced to confirm short-term support at $1,600.
During this time, Bitcoin also experienced a bullish wave, reaching $26,400. ETH briefly climbed to $1,660 but was unable to surpass the 100-day Exponential Moving Average (EMA).
Large Holders’ Impact on ETH Price
The presence of large holders is helping to keep Ethereum within the range channel and preventing bearish pressure. These holders have made significant acquisitions in both the low and high $1,600 ranges, leading to price consolidation.
While support is forming around $1,600, the recovery may take longer due to a higher supply of ETH purchased at an average price of $1,670 compared to a lower supply at an average price of $1,623.
Evaluating the Bullish Outlook for ETH Price
The recovery of ETH price depends on the support at $1,600 holding during this bearish season. Short-term indicators, such as the Moving Average Convergence Divergence (MACD), suggest that bulls have the upper hand, but momentum is lacking.
Short-term traders may consider booking profits at $1,670, which coincides with a significant supply of 6.5 million ETH. If ETH price surpasses this level, it could have a clear path to $1,700.
The Money Flow Index (MFI) indicates that investors are starting to invest in Ethereum, potentially leading to a breakout from the range and a move towards $2,000.
Hot Take:
With the possibility of the SEC approving the first futures-based ETH ETF, ETH price is expected to outperform other cryptocurrencies in September and October. The approval of futures-based BTC ETFs in 2021 led to a significant rally in Bitcoin’s price, which has increased optimism around Ethereum.
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