Ethereum is on an obvious bull path given its performance in the last couple of weeks. The digital asset took a turn for the better more than a month after the Merge was completed and accumulation among investors was already in full swing. ETH’s price eventually surpassed $1,600 before encountering rejection and dropping down below.
Ethereum Needs To Hold $1,500
Now that the digital asset has been beaten down back below $1,600, support has moved lower. $1,500 is currently serving as the support level for Ethereum at this point. This now makes it the level to hold for bulls and the level to beat for the bears.
If the digital asset is unable to hold this level and bears are able to drag its price down below, then ETH will likely see $1,300 on its way down. Below, $1,500, support is weak given the recent sell-offs that have followed the recovery in price. Thus, it lies just above $1,300 before the losses reach a block.
As for the current resistance, it still lies above $1,600 for any significant pushback. This is because Ethereum’s price remains firmly above its 100-day moving average, with a firm middle point between this and the 200-day MA sitting at $1,800. Thus, bears continue to fight to hold any level that could prevent such a recovery.
ETH continues to hold above $1,500 Source: ETHUSD on TradingView.com
In addition to this, the sell-offs have been slower than what was recorded back during the period of the Merge. This is why despite an unfavorable announcement by the Fed on Wednesday, there is still a lot of value left from last week’s gains in the crypto market.
As long as there is no drastic shift in investor sentiment at this point leading to massive sell-offs, Ethereum is likely to continue holding above $1,500, at least for the short term. The weekend performance will be another thing entirely given that this is a period of low momentum for the market. So the current indicators for ETH holding through Friday and could deviate going into the weekend.
ETH’s biggest support still comes from investors holding out hope that the gains recorded in digital assets such as Dogecoin will eventually spill into the broader altcoin market. If so, then ETH could see a rally above $1,600 once more before the weekend is in full swing.
Featured image from CNBC, chart from TradingView.com
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