ETH Price Recovery Shaky Above $1,600 As Unique Addresses Hit 1M, Capitulation Signal?

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.

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