Based on its recent performance, Ethereum appears to be heading in a bullish direction. After the Merge, Ethereum’s performance improved significantly and the accumulation of investors began in earnest. ETH’s price eventually surpassed $1,600 before encountering rejection and dropping down below.
Ethereum Must Have $1,500
The support level for the digital asset, now below $1600 has dropped, has fallen. At this moment, $1,500 serves as Ethereum’s support level. It is now the support level for bulls, and it’s the one to beat for bears.
If the price of the digital asset falls below this point and bears manage to pull it down, then ETH could see $1,300. Support below $1,500 is very weak due to recent sell-offs. The support level is at $1,300 just before the loss reaches a block.
The current resistance is still above $1,600, which would be sufficient to cause a significant pullback. This is because Ethereum’s price remains firmly above its 100-day moving average, with a firm middle point between this and the 200-day MA sitting at $1,800. Bears are fighting to keep Ethereum’s price above its 100-day moving average. The 200-day MA is at $1,800.
Source: ETHUSD on TradingView.com| Source: ETHUSD on TradingView.com
Additionally, these sell-offs are slower than those recorded during the Merge period. This is why despite an unfavorable announcement by the Fed on Wednesday, there is still a lot of value left from last week’s gains in the crypto market.
Ethereum should not see a dramatic shift in investor sentiment that leads to massive selloffs. Ethereum is expected to hold over $1,500 for at least the short-term. Because the market is experiencing low momentum, it will be interesting to see how Ethereum performs over the weekend. The current indicators of ETH are stable through Friday, but could change going into weekend.
ETH’s biggest support still comes from investors holding out hope that the gains recorded in digital assets such as Dogecoin will eventually spill into the broader altcoin market. If that is true, then ETH might see a rally over $1,600 again before weekend begins.
CNBC featured image and chart by TradingView.com
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