ETH Price Comeback Stalls β What To Expect
The price of Ethereum (ETH) has experienced a bullish comeback this week, surpassing the support level of $1,600. This surge in price can be attributed to positive sentiment surrounding the Franklin Templeton spot BTC ETF filing. As a $1.5 trillion asset management firm, Franklin’s interest in the crypto market is seen as a positive sign.
Although ETH had previously dropped to $1,531, revisiting levels last seen six months ago in March, it quickly rebounded to $1,640. Despite unfavorable US Consumer Price Index (CPI) data, the cryptocurrency market remains stable.
Currently, Ethereum’s live price is caught between a rock and a hard place due to a lack of momentum for further recovery towards $1,800 and $2,000. The 100-day Exponential Moving Average (EMA) acts as a significant resistance at $1,633, while the 50-day EMA provides short-term support at $1,613.
A breakout above or below these moving averages will determine whether ETH will continue its gains towards $1,800 or experience another sell-off below $1,600. If the latter occurs, Ethereum may seek relief at $1,531.
To capitalize on the current bullish narrative and solidify gains in Ethereum, traders should consider holding their long positions as long as the price remains above $1,600. The Moving Average Convergence Divergence (MACD) indicator supports this bullish outlook with a buy signal. Additionally, a recovery above the mean line into the positive region could attract more traders to buy ETH and build momentum for a rally.
Ethereum Network Activity Spikes
On Wednesday, Ethereum witnessed its highest increase in the number of unique addresses transacting on the network in eight years. According to the on-chain analytics platform Santiment, the number of addresses transacting on the protocol rose to 1,089,893.
This spike in unique addresses is often considered a bullish signal for Ethereum. Solldy, an analyst who shares his views on ETH price and other cryptos on Tradingview, believes that this increase in activity could be the signal needed for prices to rebound. He notes that the downward momentum has slowed down and the current support level has been confirmed multiple times. With decreasing trade volumes, Solldy anticipates that Ethereum is preparing for growth once it overcomes resistance levels.
The short-term support at $1,600 is crucial for Ethereum’s price movement. It will determine whether ETH rallies above $2,000 or experiences a decline to lower levels at $1,531, $1,450, or even $1,000 before entering a bull market.
Hot Take: Ethereum’s Price Rebound and Network Activity Fuel Optimism
Ethereum’s recent price rebound and spike in network activity have generated optimism among traders and investors. The positive sentiment surrounding the Franklin Templeton spot BTC ETF filing has contributed to ETH’s bullish comeback. With the support level at $1,600 holding strong and indications of further growth supported by technical indicators like MACD, Ethereum has the potential for a rally towards $2,000.
Furthermore, the surge in unique addresses transacting on the Ethereum network signals increased interest and participation in the ecosystem. This activity is seen as a bullish sign for Ethereum’s future prospects.
Overall, while short-term challenges remain with resistance levels and potential sell-offs, Ethereum’s recent performance and network activity suggest a promising outlook for the cryptocurrency.
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