The Ethereum price has maintained its position above the $1,600 mark, along with the ascending support trendlines for the past three weeks. Frequent dips to this level, swiftly met with buying interest, underscore the resolve of buyers to hold the fort. However, is this fortified support enough to usher in a bullish turnaround?
Also Read: Ethereum Discussions Spikes Amidst Spot ETF Filings, Is ETH Price Aiming Bulls?
$1600 Support Prevents ETH Price From Major Fall
- The Ethereum chart continues to present demand pressure at the $1600 mark.
- A breakout above the overhead trendline will offer better confirmation of recovery
- The intraday trading volume in Ether is $2.4 Billion, indicating a 14.5% loss.
Source- Tradingview
On August 29, the Ethereum coin saw a dash of optimism as buyers propelled the price to $1,744. This move aimed to rekindle bullish hope among investors. Yet, this was short-lived, as prices swiftly retraced to the familiar territory of $1,600.
Amidst the prevailing market uncertainty, ETH price presently stands at $1,620, showing a minor intraday loss of 0.77%. Notably, sellers made an attempt to pierce through the bottom trendline today.
But all is not bleak. Should buyers retain control and defend this crucial level, there’s a potential bullish reversal on the horizon. Such a move would directly challenge the descending resistance trendline that has been the bane for ETH price over the past couple of months.
A successful break above this could signal a broader recovery, possibly driving altcoin towards $1,875.
Will Ethereum Plunge to $1500?
It should be noted that the inability of buyers to mount a substantial recovery, despite numerous bounce-backs from the bottom trendline, suggests tepid bullish confidence. This could be a harbinger of a more prolonged downturn. If the coin price dips below the support trendline and with a daily candle closing beneath it, it could spell a bearish continuation, potentially dragging Ether down to the $1,500 level. The long-term support trend hovering above this support could offer a major dip opportunity for traders
- Exponential Moving Average: The 100-and-200-day EMA slope nearing a bearish crossover could intensify supply pressure in the market.
- Relative Strength Index: The daily RSI slope must rise above the 40% market to enter sufficient momentum of bullish reversal.
