Can ETH Price Hold $1600 Support Amidst the Market Downturn?

Amid the Bitcoin price struggling to breach the $28,500 level, many prominent cryptocurrencies have been subject to increased selling pressure during their respective recoveries. Ethereum, the second largest cryptocurrency was no exception, experiencing a stark pullback from the $1745 supply zone. This resulted in a 7.8% decline over the past 5 days, dragging this altcoin’s valuation down to $1,609. Is this just a brief setback or does it signify the onset of a deeper downturn?

Also Read: Ethereum Futures ETF Trading Volume Picks Momentum After Slow Start

Will ETH Price Surpass $1800?

• A bullish breakout from $1745 could set the ETH price for a quick 7.5% jump
• Ethereum fear and greed index valuing at 50% reflects a neutral stance in the market
• The intraday trading volume in Ether is $4.4 Billion, indicating a 16% loss

Source- Tradingview

The Ethereum price showcased a new relief rally beginning in the second week of September. Over the span of a month, the coin displayed successive higher highs and higher lows, indicating bullish market sentiments backing this resurgence. 

In addition, the daily chart reveals an ascending trendline, which has consistently provided dynamic support during this rally. Each retreat to this support trendline has witnessed a rapid bullish response. As of the current analysis, the Ether stands at $1,640. 

Given the ongoing correction, the Ethereum coin is poised to touch the lower trendline once more. Should buyers staunchly defend this level, we could anticipate a 7.75% upswing, targeting the resistance at $1,745. 

A decisive move above this threshold would underscore a strengthened bullish sentiment, potentially catapulting the ETH price towards $1,877, followed by the $2,000 mark.

ETH vs BTC Performance

Source: Coingape| Ethereum Vs Bitcoin Price

Comparing the price performances of the two crypto giants over the past two months, Bitcoin has outshone Ethereum. During its recent recovery, the BTC price managed to exceed its previous swing high at $27,361. In contrast, the ETH price grapples to overcome the such name peak at $1,713, suggesting a more lateral movement. Notably, amidst the broader market’s bearish inclinations, this altcoin has demonstrated a more pronounced retracement compared to its peers.

• Moving Average Convergence Divergence The MACD(blue) and signal(orange) lines converging near the midline reflect a neutral stand from market participants.
• Exponential Moving Average: the daily 100 and 200 EMAs wavering around the $1735 mark increases the overhead supply pressure for the ETH price.