Crypto News– Ethereum’s price has shown remarkable stability this week, despite concerns arising from a substantial transfer of the leading smart contracts token to a major exchange. After gaining 3% over the past week, ETH is trading at $1,634 as of Wednesday.
Ethereum Price Forecast: Breaking 1,600 Dollars Barrier Could Trigger a 58% Bullish Surge for ETH
The cryptocurrency market, which has surprisingly maintained a positive stance, witnessed Bitcoin surging by 5% to reach $27,156. All eyes are now on the September monetary policy decision by the Federal Open Market Committee (FOMC) meeting.
Ethereum and Bitcoin have made substantial gains since the release of the United States Consumer Price Index (CPI) a week ago, which indicated ongoing inflation concerns.
An interest rate hike is a probable move as the Federal Reserve aims to counter the soaring inflation primarily driven by a persistent rise in global crude oil prices.
However, the crypto market has displayed remarkable resilience against interest rate hikes in recent months. Consequently, investors are likely to maintain a positive outlook regardless of the FOMC meeting outcome.
The Likelihood of Ethereum’s Price Rallying to $3,325 Ethereum price bulls face a critical obstacle between $1,650 and $1,700. A successful breakthrough and sustained hold in this range would confirm a breakout towards $1,800, potentially triggering a buying spree as the market structure improves for gains beyond $2,000.
According to the weekly chart, ETH is currently positioned above a key bullish indicator, the 200-weekly Exponential Moving Average (EMA) (shown in purple) at $1,626. Historically, whenever Ethereum price breaches this level, it often precedes a rally, although profit-booking activities can temper the uptrend. It’s important to note that the 200-weekly EMA alone may not be sufficient to catapult the Ethereum price into the anticipated rally. Hence, it will require a collective effort among the bulls to defend the support at $1,600 and strive to recapture the 21-weekly EMA (shown in red) and the 100-weekly EMA (shown in blue).
The Probability of Ethereum’s Price Soaring to $3,325
Should all three moving averages serve as support, it would provide bulls with an opportunity to pursue a larger breakout above an emerging ascending triangle pattern.
The breakout from this pattern would materialize after the ETH price surges past the resistance at $2,100, ideally accompanied by a surge in trading volume, which would call for buy orders placed above the resistance level.
The target for this breakout, amounting to a 58% rise to $3,325, aligns with the height of the triangle pattern extrapolated from the breakout point.
For added confirmation, some traders may wait for a buy signal from the Moving Average Convergence Divergence (MACD) indicator. Such a signal would manifest as the blue MACD line crossing above the red signal line, while the momentum indicator generally trends upward.
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