Ethereum (ETH) rose above $1,500 for the first time since June 13 after a long-awaited rebound. ETH managed to rise above the moving average (MA 50) at the start of the week, which gives hope for the restoration of strong support. However, the overall crypto market capitalization is down almost 2% lower for today, although at the end of the week with solid gains—the strongest in a month. Volatility remains high on ETH/USD as profit takers contributed to the bulls’ running out of steam under the $1,700 barrier. At the time of this analysis, the ETH/USD pair is trading at $1,543 after reaching intraday highs of $1,596. Ethereum’s overall market cap updated a four-year low that was last seen on exchanges. The estimated value of the coins available on exchanges at this time is 19.1 million ETH. The weekly outflow of altcoins from exchanges also reached a 13-month high during this period. According to Glassnode, 29,823 ETH in total were removed throughout the week.
Key Levels
Resistance Levels: $2,300, $2,000, $1,700
Support Levels: $1,500, $1,300, $1,000
ETH/USD Daily ChartAfter its most recent recovery, ETH/USD made a small rebound towards $1,700. To restrict expected bearish potential, the pair is currently trying to consolidate its gains above the $1,500 level on the daily time frame. Unless the newly developed support level of $1,500 is broken, no negative correction is probable.
In a broader sense, the increase above the MA 50 at the $1,300 level is supported by the daily chart’s overbought Relative Strength Index (RSI), which is below 75 points. The next rally for ETH is the moving average (MA 200) at $2,400 in price. As long as the $1,500 support level holds, this might be the preferred scenario.
ETH/USD 4-Hour ChartDespite lessening selling pressure as it retraces around the crucial threshold of $1,500, the intraday bias in ETH/USD remains rangebound on the 4-hour chart. A sustained move over the $1,700 level could affirm the continuation of the rise from the previous low of $1,000, which is forecast to aim for the $2,000 level.
On the downside, this bearish outlook would downplay the significance of the recent low at the $1,000 level in favor of the breach of the critical support level at $800 instead. A sharp decline might give the bears complete leverage and damage the short-term prediction of the $1,700 level in anticipation of coming back into focus.
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