Ethereum Price Approaching $1414 Teases Breakout; Is $1600 Within Reach?

Published 51 mins ago

The last mid-week, the Ethereum price witnessed a nominal recovery after hitting local support of $1243.  Furthermore, with the start of a new week, the prices gain bullish momentum and challenge the overhead resistances of the 20-day EMA and the $1414 resistance level. So, will the buyers undermine this confluence of bearish oppositions this week to reach $1600?

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Key points: 

  • The Ethereum price approaches the resistance of $1414.
  • The improving sentiments with the recovery rally tease a breakout entry possibility. 
  • The intraday trading volume in Ethereum is $15.77 Billion, indicating a loss of 2.41%. 

Ethereum price Chart

Source- Tradingview

Amid the recovery rally observed last weekend, the Ethereum market price reverses from the $1,243 support level. The reversal starts after a 30% drop in the market value between September 11th to September 21st.

Improvement in the underlying sentiments alleviates the selling pressure and boosts Ethereum price by 10% over the last few days. Additionally, in the previous 48 hours, the market value has risen by 6.68% resulting in two bullish engulfing candles which challenge a resistance confluence. 

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To prolong the uptrend, the buyers will have to exceed the overhead resistance confluence of the 20-day EMA and the horizontal level of $1414. However, the buyers must stay cautious and control their optimism as the 20-day EMA breakout rally will face opposition from a potential resistance trendline.

The technical chart shows that the Ethereum price action displays a lower high formation, generating a resistance trendline. Moreover, the resistance trendline is in confluence with the psychological mark of $1600, promising to be the next pitstop of bearish reversal.

Therefore, optimistic traders can find the $1414 level breakout as a bullish entry spot with a potential target of the $1600 supply zone. Thus, the technical analysis displays a bullish entry opportunity with a 10% to 13% bull run possibility. 

From a pessimistic viewpoint, a bearish turnaround from the $1400 level will result in a lateral trend with the bottom support of $1243.

Technical indicator-

DMI: The recovery rally over the past 48 hours influence a bullish turnaround in the DI lines, projecting a possibility of a bullish crossover. Moreover, the spiked ADX line displays an increased trend momentum.

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MACD: the bullish crossover in the MACD and signal lines end the bearish histograms and offer a fresh uptrend. 

Ethereum intraday price levels

  • Spot price: $1364
  • Trend: Bullish
  • Volatility: Increasing
  • Resistance level- $1414 and $1600
  • Support level- $1243 and $1127

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From the past 5 years I working in Journalism. I follow the Blockchain & Cryptocurrency from last 3 years. I have written on a variety of different topics including fashion, beauty, entertainment, and finance. raech out to me at brian (at) coingape.com

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.

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