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
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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.
