Ethereum price is on the verge of confirming a rejection from potential bull support provided by the 200-week exponential moving average (EMA). A break below this support – currently resistance – is exerting pressure on the next buyer concentration area at $1,600.
The bulls must act quickly to stop the sellers from moving away from this zone, otherwise, they might exacerbate the bearish scenario.
Initially, the cryptocurrency market seemed to have priced in the Federal Open Market Committee’s (FOMC) decision to stop raising interest rates in September. However, investors seemed concerned about comments from Fed Chairman Jerome Powell regarding the need for further rate hikes, or at least a hike before the end of the year.
“We want to see convincing evidence that we’ve reached an appropriate level and that we’re seeing progress, and we welcome that,” Powell said. “But, you know, we need to see more progress before we’re willing to conclude that.”
Is this the end of the bullish road for Ethereum price?
The recent breakout above the 200-week MA (purple) at $1,625-$1,650 is a significant sign that bulls are in control. With this level now acting as resistance, bulls must build a roadblock or stabilize their rate breakout to reduce the chances of a larger sell-off.
The Moving Average Convergence Divergence (MACD) indicator is giving a sell signal despite moving sideways at the midline (0.00). As long as the blue MACD line remains below the red signal line, a rebound remains a pipe dream.
That said, a break below the immediate support at $1,600 could see a sweep of the March price levels for the second time in September. Ethereum price rebounded from $1,530 last week but lost momentum near $1,650, pausing the uptrend.
ETH/USD weekly chart
Ethereum price bulls will have another chance to cover the uptrend if the next support at $1,600 refuses to move.
A bull rally above $2,000 is not ripe until ETH reclaims the 200-day MA support/resistance, 21-week MA (red), and 100-week MA (blue).
Ethereum Futures ETF Approval Could Herald a Rally
Grayscale Investments made headlines this week for filing a proposal with the U.S. Securities and Exchange Commission (SEC) to launch an ETH futures-based exchange-traded fund (ETF). This is Grayscale’s second ETH futures ETF filing as the company seeks to increase its chances of receiving regulatory approval.
Following reports that the SEC may approve several proposals in October, companies have expressed interest in futures-based Ethereum ETFs.
Eric Balchunas, senior ETF analyst at Bloomberg, said on August 10 that the SEC tends to ask potential clients to withdraw their applications within five to six days of the initial submission, but there was no communication to that effect this time.
Still, it’s too early to tell whether the SEC will approve an ETF, given the SEC’s ongoing assault on the cryptocurrency market since the FTX debacle in November.
Ethereum price may continue to struggle to maintain its uptrend until a market-changing event like the approval of a futures ETH ETF triggers massive interest in the token, leading to a significant surge.
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【Disclaimer】The market is risky, so be cautious when investing. This article does not constitute investment advice, and users should consider whether any opinions, views or conclusions in this article are suitable for their specific circumstances. Investing based on this is at your own risk.
