While ETH’s price has been trading within a range, fluctuating between the $1,600 support and the $1,700 resistance, there are indications of an imminent shift in its trend. A previous attempt to solidify a bullish outlook was abruptly halted, leading to Ethereum retracing to validate the short-term support at $1,600.
This upward movement coincided with a broader bullish sentiment in the market, which saw Bitcoin reach $26,400 late on Thursday. ETH’s price briefly reached $1,660 before encountering resistance at the 100-day Exponential Moving Average (EMA) represented by the blue line.
Currently, Ethereum’s live price has marginally increased by 0.1% for the day, bringing it to $1,630 in a bullish four-hour candle. If this upward momentum persists as anticipated, ETH is likely to conclude the day above the 21-day EMA (depicted in red), a short-term resistance level. Such a development could act as confirmation for a potential rally beyond the upper boundary of the trading range, at $1,700.
The acquisition of ETH by significant holders signals a bullish outlook.
Prominent holders are instrumental in maintaining Ethereum within its defined range, effectively containing bearish pressures. According to recent insights from the on-chain analytics platform IntoTheBlock, these whales have been responsible for “price consolidation within a narrow range, owing to substantial acquisitions spanning both the lower and upper $1,600 levels.”
The chart below illustrates a significant level of support solidifying around the lower boundary of this range at $1,600, as Ethereum’s price engages in sideways movement. Nevertheless, the anticipated rebound may require more time to materialize, given the larger supply of 6.53 million ETH procured at an average cost of $1,670, in contrast to the 5.11 million ETH acquired at an average price of $1,623.
![](https://sollcrypto.com/wp-content/uploads/2023/09/Screen-Shot-2023-09-09-at-7.25.48-AM.png)
Assessing the Positive Prospects for ETH Price
The resurgence of ETH price hinges on the stability of the $1,600 support level in the midst of this bearish market, aiming to avert any potential downturns that could result in further losses for investors due to panic selling.
A near-term buying signal from the Moving Average Convergence Divergence (MACD) indicators suggests that the bulls currently have an advantage, although they are currently experiencing a lack of momentum. As long as the blue MACD line remains above the red signal line, the ETH price will maintain its reversal trend, with the potential for gains surpassing the $1,700 mark.
![](https://sollcrypto.com/wp-content/uploads/2023/09/Screen-Shot-2023-09-09-at-7.27.03-AM.png)
For short-term traders holding long positions, it may be prudent to contemplate taking profits at the $1,670 level, as it aligns with a resistance point coinciding with a supply of 6.5 million ETH. If ETH successfully surmounts this barrier, it will pave the way for bulls towards the $1,700 mark, which also corresponds with the upper range limit and intersects with the 200-day Exponential Moving Average (EMA) represented by the purple line.
Analyzing the Money Flow Index (MFI), an indicator that compares the volume of funds flowing in and out, there’s a notable influx of investment into Ethereum. This influx of capital could be the catalyst that propels the second-largest cryptocurrency out of its current trading range and toward the $2,000 threshold.
Furthermore, the Ethereum community eagerly anticipates the potential approval of the first futures-based Ethereum Exchange-Traded Fund (ETF) by the SEC. Experts argue that the time is ripe for such approval, especially given the existence of futures-based Bitcoin ETFs since 2021.
With the ETF approval appearing increasingly likely, the ETH price is expected to outperform most cryptocurrencies in September and October, including Bitcoin. Notably, following the approval of the futures ETF in 2021, Bitcoin’s price surged by over 60%, contributing to the growing optimism surrounding Ethereum.