ETH price is ushering in the new week with noticeable gains after bulls successfully battled calls for a sell-off due to the rising inflation in the United States. After briefly succumbing to selling pressure over the weekend, the most significant smart contracts token bounced off support at $1,600 and is now trading at $1,630 as bulls capitalize on the improving market sentiment.
ETH Price Bulls Back In Action
Despite the negative pressure in the market since June when the Securities and Exchange Commission (SEC) sued Binance and Coinbase while implicating various cryptocurrencies including Cardano (ADA), Solana (SOL) and Polygon (MATIC), ETH price has sustained support above $1,530.
If the higher support area from $1,600 to $1,630 holds, Ethereum may settle for consolidation with the upper limit at $1,700 before the next breakout targeting highs above $2,000.
Based on the Moving Average Convergence Divergence (MACD) indicator, sideways trading might take precedence until ETH price weakens the immediate resistance at $1,632 – highlighted by the 100-day Exponential Moving Average (EMA) (blue).
The 50-day EMA (red) at $1,623 serves as the immediate support, and therefore it is a relief to the major buyer congestion areas at $1,600 and $1,530, respectively.
Traders should look for a buy signal likely to emanate from the momentum indicator. New or additional buy orders may be placed above the 100-day EMA and only after the blue MACD line crosses the red signal line on the four-hour chart.
The prevailing technical outlook must keep improving for Ethereum to uphold the much-needed stability ahead of the glaring possibility of the first futures-based ETH exchange-traded fund (ETF) approval in the US.
Experts and analysts in the market believe that although a futures-based ETF does not have a direct link to the Ethereum spot price, it validates the willingness of the regulatory agency to license crypto products.
Bitcoin rallied by more than 60% following the approval of a similar product in 2021, which contributed significantly to the previous bull run.
Ethereum live price is set to be the best performer in comparison to Bitcoin if the futures-based ETF gets the green light.
Fundamental insights shared by Santiment, an on-chain analytics platform found that “Bitcoin and Ethereum’s exchange supply has resumed going lower as traders appear content hodling.”
As supply on exchanges decreases, demand tends to soar thus creating a perfect environment for an ETH price rally.
Tether (USDT), the largest stablecoin, has been moving into exchanges in large volumes and as per Santiment analysts it is “now at the highest level since March. This indicates more future buy interest.”
Investors buying Tether reveal their readiness to jump on an opportunity to buy Ethereum if the SEC approves the future-based ETF in October.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.