ETH Price Analysis: $1600 Breakout may Resolve Uncertainty in Ethereum  

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Published 52 mins ago

Since last week the Ethereum (ETH) price has been wobbling within the $1600 and $1485 barriers. The long wick-and-tails attached to the daily candle within this range reflect high volatility in the market. Thus, the coin price needs a breakout from either of the range’s levels to kickstart a directional rally.

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Key points: 

  • The ETH price has risen 60% from the bottom support of $1000
  • The coin buyers face intense supply pressure from the $1600 mark
  • The intraday trading volume in Ethereum is $16.8 Billion, indicating a 5.4% loss

ETH/USDT Chart

Source- Tradingview

Following June’s first half sell-off, the ETH/USDT pair resonated between the $1270 and $1000 levels for a whole month. However, as the market sentiment is improving, altcoin managed to breach the overhead resistance on July 16th.

The resulting run-up surged 20% as the BTC price reached the $1600 psychological level. However, since last week, the coin buyers showcased several attempts to reclaim this level, but they all ended with the candle closing below the $1600 resistance.

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Thus, the multiple higher price rejection candle at the mentioned level indicates the sellers are aggressively deafening this level. If the selling pressure persists, a retracement is plausible, which may plunge the ETH price to $1485 or $1400 support.

However, the coin price is 4% up today and projects another attempt to pierce the $1600 resistance. A daily candlestick above this level may resolve this consolidation in buyers’ favor and bolster altcoin to climb higher.

The potential rally may drive a quick run-up to immediate resistance of $1730, registering an 8% growth.

Technical indicator-

Vortex indicator: the VI+ and VI- slopes have barely responded amidst a minor price-action consolidation, indicating a sustained bullish momentum.

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DMA: the recent recovery rally sliced through the 20 and 50 DMA, offering early signs of a trend reversal. Moreover, a bullish crossover among these slopes bolsters the $1600 breakout.

  • Resistance level- $1600, and $1730
  • Support level- $1485 and $1400

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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

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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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