ETH price bulls are starting to get a hold of the bearish situation with clear intentions of fighting for a trend reversal. The second largest crypto is up 1.2% on Wednesday to $1,635 although the trading volume remains significantly depressed at $5.6 billion. Its market capitalization worth $196 billion has been on a persistent slope since June.
Can ETH Price Clear The Barricades To $2,000?
Ethereum live price has since the sell-off in August remained range bound between support at $1,600 and the upper limit resistance at $1,730. After making a strong attempt to escape the range barrier late in August, fueled by the hype surrounding Grayscale Investments’ win against the Securities and Exchange Commission (SEC) in the appeals court, ETH price trimmed the gains, resting the support at $1,630.
The path with the least resistance appears to have flipped to the upside, bolstered by a buy signal from the Moving Average Convergence Divergence (MACD) indicator. As the blue MACD line crosses above the red signal line and the momentum indicator generally assumes an uptrend to the mean line and later into the positive region, traders become confident in their decisions to seek exposure to long positions in Ether.
Holding onto the short-term support at $1,630 would be instrumental for the uptrend continuation. However, traders should consider the plausible bottlenecks, starting with the 50-day Exponential Moving Average (EMA) (red) at $1,645, the 100-day EMA (blue) at $1,668 and the 200-day EMA (purple) at $1,715.
Profit-booking can take place at any of those moving averages, which could slow down the uptrend. However, long-term holders of Ether are likely to compensate for the lost momentum as they keep their positions intact amid speculations of the SEC approving the first Ethereum exchange-traded fund (ETF) futures this September.
A break out of the range channel on the upside would affirm the bullish grip and increase investor confidence in the uptrend to $2,000.
It is worth mentioning that, the ETF futures approval could be the catalyst ETH price needs to escape the bearish shackles in the range. According to the Stochastic oscillator, bulls may struggle to close the gap to the range limit at $1,730 – a situation that could result in increased selling pressure.
Investors can hold their long positions as long as Ethereum is wobbling within the range limits. It is too early to rule out another sell-off, where Ether slides below $1,600 to seek support at $1,400 and $1,200 if push comes to shove.
Can ETH Price Outperform Bitcoin?
A report released by research firm K33 suggests that Ethereum could outperform Bitcoin in September and October if the first ETF futures receives approval for listing. According to experts in the industry, chances are high that the SEC will green-light the investment product.
Vetle Lunde, a senior analyst at the firm believes the futures-based ETF product would significantly boost ETH price, citing a 60% spike in Bitcoin following a similar approval a couple of years ago.
“The odds are stacked in favor of ETH,” Lunde said, referring to it as a “strong relative buy” versus bitcoin. “ETH/BTC trades near 2.5-year range lows, with considerable wiggle room for relative upside.”
Meanwhile, the industry continues to hope that the SEC will green-light the first spot Bitcoin ETF, which many experts expect will have an enormous impact on BTC price by attracting massive inflows. The SEC delayed the decision on seven BTC ETF applications last week.
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