Ethereum Price Approaching $1414 Teases Breakout; Is $1600 Within Reach?

The last mid-week, the Ethereum price witnessed a nominal recovery after hitting local support of $1243.  Furthermore, with the start of a new week, the prices gain bullish momentum and challenge the overhead resistances of the 20-day EMA and the $1414 resistance level. So, will the buyers undermine this confluence of bearish oppositions this week to reach $1600?

Key points: 

• The Ethereum price approaches the resistance of $1414.
• The improving sentiments with the recovery rally tease a breakout entry possibility. 
• The intraday trading volume in Ethereum is $15.77 Billion, indicating a loss of 2.41%. 

Source- Tradingview

Amid the recovery rally observed last weekend, the Ethereum market price reverses from the $1,243 support level. The reversal starts after a 30% drop in the market value between September 11th to September 21st.

Improvement in the underlying sentiments alleviates the selling pressure and boosts Ethereum price by 10% over the last few days. Additionally, in the previous 48 hours, the market value has risen by 6.68% resulting in two bullish engulfing candles which challenge a resistance confluence. 

To prolong the uptrend, the buyers will have to exceed the overhead resistance confluence of the 20-day EMA and the horizontal level of $1414. However, the buyers must stay cautious and control their optimism as the 20-day EMA breakout rally will face opposition from a potential resistance trendline.

The technical chart shows that the Ethereum price action displays a lower high formation, generating a resistance trendline. Moreover, the resistance trendline is in confluence with the psychological mark of $1600, promising to be the next pitstop of bearish reversal.

Therefore, optimistic traders can find the $1414 level breakout as a bullish entry spot with a potential target of the $1600 supply zone. Thus, the technical analysis displays a bullish entry opportunity with a 10% to 13% bull run possibility. 

From a pessimistic viewpoint, a bearish turnaround from the $1400 level will result in a lateral trend with the bottom support of $1243.

Technical indicator-

DMI: The recovery rally over the past 48 hours influence a bullish turnaround in the DI lines, projecting a possibility of a bullish crossover. Moreover, the spiked ADX line displays an increased trend momentum.

MACD: the bullish crossover in the MACD and signal lines end the bearish histograms and offer a fresh uptrend. 

Ethereum intraday price levels

• Spot price: $1364
• Trend: Bullish
• Volatility: Increasing
• Resistance level- $1414 and $1600
• Support level- $1243 and $1127