Ethereum Price Struggles at 200-Weekly EMA Resistance
Ethereum’s price is facing potential rejection from the 200-weekly Exponential Moving Average (EMA), which had previously acted as a support level. The decline below this support-turned-resistance is putting pressure on the next buyer congestion area at $1,600.
Urgency for Bulls to Defend Support
Bulls must act quickly to defend the $1,600 support level and prevent further selling pressure. Failure to do so could worsen the bearish situation for Ethereum.
FOMC Decision and Investor Concerns
The Federal Open Market Committee’s decision to pause interest rate hikes for September initially seemed priced in by the crypto market. However, investors are now concerned about remarks made by Fed Chair Jerome Powell, suggesting the need for more rate hikes before reaching a conclusion.
Uncertainty for Ethereum Bulls
The recent move above the 200-week EMA signaled bullish control, but with this level now acting as resistance, Ethereum bulls need to establish a strong defense to avoid a larger sell-off. The Moving Average Convergence Divergence (MACD) indicator still shows a sell signal, indicating the need for caution.
Support Levels and Uptrend Challenges
If Ethereum’s price drops below the immediate support at $1,600, it could revisit price levels last seen in March. Reclaiming key levels such as the 200-day EMA, 21-week EMA, and 100-week EMA will be crucial for a sustained uptrend and potential gains above $2,000.
Ethereum Futures ETF Approval as a Potential Catalyst
Grayscale Investments has filed a proposal with the SEC for a futures-based Ethereum exchange-traded fund (ETF). This filing comes as companies seek approval for such ETFs, anticipating a positive response from the SEC in October. The approval of a futures ETH ETF could trigger a significant rally in Ethereum’s price.
Uncertainty Surrounding SEC Approval
While there is no communication yet from the SEC regarding the ETF filings, it remains uncertain whether they will be approved. The SEC’s history of caution and scrutiny towards the crypto market adds to the uncertainty surrounding the approval of Ethereum futures ETFs.
Market-Changing Event Needed for Uptrend
Ethereum’s price may continue to struggle with maintaining the uptrend until a significant event, such as the approval of a futures ETH ETF, generates substantial interest in the token and triggers a major rally.
