Can Bulls Defend $1,600 Support?

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Ethereum value is on the verge of confirming a rejection from a possible bull market help supplied by the 200-weekly Exponential Moving Average (EMA). Declines under this help – now resistance is exerting stress on the following purchaser congestion space at $1,600.

Bulls should transfer and act shortly to maintain sellers off this space, in any other case, they threat exacerbating the bearish state of affairs.

At first, the Federal Open Market Committee’s (FOMC) determination to halt rate of interest hikes for September appeared to have already been priced in by the crypto market. However, buyers appear involved by the remarks made by Jerome Powell, the Fed Chair on the necessity for extra price hikes, or at the least one earlier than the yr ends.

“We want to see convincing evidence really that we have reached the appropriate level, and we’re seeing progress and we welcome that,” Powell stated. “But, you know, we need to see more progress before we’ll be willing to reach that conclusion.”

Is This The End of The Road for Ethereum Bulls?

The latest transfer above the 200-week EMA (purple) at $1,625 to $1,650 was a big sign that bulls had the reins. With this degree now performing as resistance, bulls should put up a barricade or regular their velocity breaks to scale back the chance of an even bigger sell-off.

The Moving Average Convergence Divergence (MACD) indicator though shifting sideways on the imply line (0.00) nonetheless dons a promote sign. As lengthy because the blue MACD line holds under the pink sign line, a rally will stay a pipe dream.

That stated, losses under $1,600 speedy help might sweep by way of value ranges seen final in March for the second time in September. Ethereum price bounced off $1,530 final week however misplaced steam round $1,650, pausing the uptrend.

ethereum price chart — ETH/USD weekly chart | Tradingview

If the following help at $1,600 refuses to budge, Ethereum value bulls may have one other likelihood at patching up the uptrend.

Until ETH reclaims the 200-day EMA help/resistance, the 21-week EMA (pink), and the 100-week EMA (blue), the time gained’t be ripe for a bull market rally for good points above $2,000.

Ethereum Futures ETF Approval Could Signal A Rally

Grayscale Investments made headlines this week for submitting a proposal with the Securities and Exchange Commission (SEC) to supply a futures-based ETH exchange-traded fund (ETF). This is the second submitting by Grayscale for ETH futures ETF because the agency seeks to extend the possibilities of getting the regulator’s approval.

Companies have been expressing curiosity in futures-based Ethereum ETFs following experiences that the SEC would possibly greenlight a number of proposals in October.

Eric Balchunas, a senior ETF analyst at Bloomberg stated on August 10 that the SEC tends to ask potentials to withdraw their purposes 5 to 6 days from the primary submitting, however this time no communication has been made in that regard.

In the previous the SEC has informed Ether Futures ETF filers to withdraw 5-6 days after the primary submitting hit. We at the moment are on Day 13 and no withdrawals. Not dwelling free but however superb signal. As we predicted these will seemingly hit market in mid-October. https://t.co/22WM1HghEp

— Eric Balchunas (@EricBalchunas) August 10, 2023

Nevertheless, it’s too early to inform if the SEC will greenlight the ETFs, contemplating its longstanding assault on the crypto market because the FTX implosion in November.

Ethereum value might proceed to battle with upholding the uptrend till a market-changing occasion just like the approval of the futures ETH ETF triggers immense curiosity within the token, leading to a significant rally.