ETH Price Analysis: $1600 Breakout may Resolve Uncertainty in Ethereum
Since last week the Ethereum (ETH) price has been wobbling within the $1600 and $1485 barriers. The long wick-and-tails attached to the daily candle within this range reflect high volatility in the market. Thus, the coin price needs a breakout from either of the range’s levels to kickstart a directional rally.
Key points:
- The ETH price has risen 60% from the bottom support of $1000
- The coin buyers face intense supply pressure from the $1600 mark
- The intraday trading volume in Ethereum is $16.8 Billion, indicating a 5.4% loss
Source- Tradingview
Following June’s first half sell-off, the ETH/USDT pair resonated between the $1270 and $1000 levels for a whole month. However, as the market sentiment is improving, altcoin managed to breach the overhead resistance on July 16th.
The resulting run-up surged 20% as the BTC price reached the $1600 psychological level. However, since last week, the coin buyers showcased several attempts to reclaim this level, but they all ended with the candle closing below the $1600 resistance.
Thus, the multiple higher price rejection candle at the mentioned level indicates the sellers are aggressively deafening this level. If the selling pressure persists, a retracement is plausible, which may plunge the ETH price to $1485 or $1400 support.
However, the coin price is 4% up today and projects another attempt to pierce the $1600 resistance. A daily candlestick above this level may resolve this consolidation in buyers’ favor and bolster altcoin to climb higher.
The potential rally may drive a quick run-up to immediate resistance of $1730, registering an 8% growth.
Technical indicator-
Vortex indicator: the VI+ and VI- slopes have barely responded amidst a minor price-action consolidation, indicating a sustained bullish momentum.
DMA: the recent recovery rally sliced through the 20 and 50 DMA, offering early signs of a trend reversal. Moreover, a bullish crossover among these slopes bolsters the $1600 breakout.
- Resistance level- $1600, and $1730
- Support level- $1485 and $1400
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