ETH Price Bulls Strive to Reverse the Bearish Trend
As a crypto reader, you’ll be pleased to know that the price of ETH is showing signs of improvement. It has increased by 1.2% on Wednesday, reaching $1,635. However, the trading volume remains low at $5.6 billion. The market capitalization of ETH has been steadily declining since June, currently standing at $196 billion.
Can ETH Price Reach $2,000?
Since the sell-off in August, the price of Ethereum has been fluctuating between the support level of $1,600 and the resistance level of $1,730. Despite attempting to break through the resistance in late August, ETH price fell back and found support at $1,630.
Recently, the Moving Average Convergence Divergence (MACD) indicator has signaled a potential uptrend. This has increased traders’ confidence in taking long positions in Ether. However, there are several obstacles to consider, such as the 50-day, 100-day, and 200-day Exponential Moving Averages (EMA).
If ETH can break out of the range channel and surpass the resistance at $1,730, it could pave the way for further gains and potentially reach $2,000. However, the approval of the first Ethereum exchange-traded fund (ETF) futures by the SEC in September could be a game-changer for ETH price. On the other hand, if the Stochastic oscillator indicates increased selling pressure, the price may struggle to break through the resistance.
Can ETH Price Outperform Bitcoin?
According to a report by research firm K33, Ethereum has the potential to outperform Bitcoin in September and October if the first ETF futures gain approval. Experts believe that there is a high chance of the SEC giving the green light to this investment product, which could significantly boost the price of ETH.
Vetle Lunde, a senior analyst at K33, suggests that ETH is a strong buy compared to Bitcoin, considering its current relative lows. Lunde expects a similar spike in price to what Bitcoin experienced after a similar approval in the past.
While the industry eagerly awaits the SEC’s decision on the first spot Bitcoin ETF, the approval of such a product is expected to have a substantial impact on BTC price. The SEC recently delayed its decision on seven BTC ETF applications.
Hot Take:
Investors should closely monitor the price movements of ETH and consider holding long positions within the range limits. However, it’s important to remain cautious as the market could experience another sell-off, potentially causing ETH to drop below $1,600 and seek support at $1,400 or even $1,200.
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