Ethereum Bulls Defend $1,600 Support as ETH Futures ETF Approval Looms
Ethereum (ETH) bulls successfully protected the $1,600 support level this week, amid challenges in the crypto industry. Recent reports suggest that the US SEC may approve several ETH Futures ETF applications, which could have an impact on ETH price in the short term.
Key Points:
- Bloomberg report hints at potential approval of ETH Futures ETF applications by the US SEC.
- Ethereum whales continue to dump their holdings despite the price bounce after a sell-off.
- The dumped coins by the whales amount to $1.86 billion.
- Ethereum is approaching oversold territory, indicating a potential bullish reversal.
- Investors may buy the dip in anticipation of a positive price reaction.
On-chain data reveals that Ethereum whales have been selling their holdings since mid-July, even after the Bloomberg report. These whales, holding between 10,000 to 100,000 coins, have depleted their ETH holdings by 1.12 million coins. The correlation between their selling and ETH price movements is evident, with ETH price dropping by 18% during this period.
Ethereum’s daily Relative Strength Index (RSI) closed at 14 on August 18, indicating that 86% of its price movements in the past two weeks have been downwards. This oversold territory can be seen as a potential signal for strategic investors to buy the dip, expecting a bullish reversal in the near future.
With the RSI in oversold territory, investors are placing orders to buy 50,720 ETH if the price drops to $1,500. However, if bearish momentum continues, ETH price may fall to $1,400 before rebounding. Conversely, if the Futures ETF approval is confirmed, bulls may attempt to reclaim the $1,900 milestone, but market demand will determine the success of the recovery mission.
Hot Take:
While the potential approval of ETH Futures ETFs by the US SEC may provide a boost to ETH price, the ongoing selling pressure from whales and the oversold condition indicate a challenging short-term outlook. Investors should closely monitor market dynamics and strategic levels like $1,500 and $1,900 to make informed decisions.
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