The price of ETH has been trading within a range between $1,600 and $1,700. However, there are indications that a trend reversal may be on the horizon. Previously, there was an attempt to maintain a bullish outlook, but the price retraced to confirm support at $1,600.
During this uptrend, Bitcoin also experienced a bullish wave, reaching $26,400. ETH reached $1,660 but was unable to surpass the 100-day Exponential Moving Average (EMA) (blue).
Currently, ETH has rebounded to $1,630 in a bullish four-hour candle, showing a 0.1% increase for the day. If this rebound continues, it is likely that ETH will close the day above the short-term resistance at the 21-day EMA (red), which could confirm a rally above the upper range limit at $1,700.
The involvement of large holders in acquiring ETH is seen as a bullish signal. These whales are contributing to price consolidation within the range, particularly in the low and high $1,600 ranges.
Although there is significant support forming around the lower range limit at $1,600, the expected recovery may take some time due to the higher supply of ETH purchased at an average price of $1,670 compared to ETH purchased at an average price of $1,623.
To evaluate the bullish outlook for ETH, it is important to monitor the support at $1,600 during this bearish season to prevent potential dips that could lead to panic selling.
The Moving Average Convergence Divergence (MACD) indicators currently show a short-term buy signal, indicating that bulls have the upper hand. However, they lack momentum. As long as the blue MACD line remains above the red signal line, the trend reversal for ETH will likely continue, potentially surpassing $1,700.
Short-term traders with long positions may consider taking profits at $1,670, which coincides with the resistance level and the 6.5 million ETH supply. If ETH successfully breaks through this hurdle, it could pave the way for further gains towards $1,700, which aligns with the range limit and the 200-day EMA (purple).
The Money Flow Index (MFI), which compares inflow and outflow volume, suggests that investors are starting to invest more money into Ethereum. This could potentially lead to a breakout from the range and a push towards $2,000.
Additionally, the Ethereum community is eagerly awaiting the potential approval of the first futures-based ETH ETF by the SEC. Considering that futures-based BTC ETFs have been approved since 2021, experts believe it is time for a similar approval for ETH. If this happens, ETH price is expected to outperform most cryptocurrencies in September and October, including Bitcoin. In 2021, BTC price rallied by over 60% following the approval of futures ETFs, which has contributed to the positive sentiment surrounding Ethereum.