ETH price strengthened the bullish outlook from the beginning of this week with gains exceeding the current support at $1,600. This bullish comeback can be attributed to sentiment surrounding the Franklin Templeton spot BTC ETF filing. Franklin is a $1.5 trillion asset management firm and its interest in the crypto market has been perceived to be positive.
ETH Price Comeback Stalls – What To Expect
The largest smart contracts token had plunged to $1,531, revisiting levels seen six months ago in March before making a sharp rebound to $1,640. While the US Consumer Price Index (CPI) data came out unfavorable, it did not destabilize the crypto market.
Due to the lack of momentum to nurture the ongoing recovery to $1,800 and then to $2,000, Ethereum live price holds between a rock and a hard place. On the upside, the 100-day Exponential Moving Average (EMA) serves as a major boundary at $1,633, with the 50-day EMA proving short-term support at $1,613.
A break either above or below the moving averages would either validate gains to $1,800 or trigger another sell-off below $1,600, where ETH price may be forced to seek relief at $1,531.
Traders should consider holding their long positions in Ethereum as long as the price is above $1,600. The Moving Average Convergence Divergence (MACD) indicator is solidifying the bullish narrative with a buy signal. Recovery above the mean line (0.00) into the positive region could also call more traders to buy ETH, building the momentum for a rally.
Ethereum Network Activity Spikes
Ethereum saw the biggest increase in the number of unique addresses transacting on the network on Wednesday – the second highest in eight years. According to the on-chain analytics platform Santiment, addresses transacting on the protocol rose to 1,089,893.
“This historic anomaly could be the capitulation signal needed for prices to rebound.”
A spike in the unique addresses transacting on Ethereum is often considered a bullish signal. Solldy, an analyst who shares his view of ETH price and other cryptos on Tradingview believes that:
“The downward momentum has slowed down. The chart confirmed the current support level several times. The volumes of trades decreased even more. I believe that Ethereum is preparing for growth, which will start only after overcoming the resistance level.”
The short-term support at $1,600 remains critical to ETH price. It is the crossroads that will determine if Ethereum rallies above $2,000 from the prevailing level or sweeps through lower levels at $1,531, $1,450, or $1,000 before the run-up into the bull market begins.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.