ETH price is bouncing off support at $1,700 after retracing from resistance at $1,750. The uptick this week, although a surprise to many, has been welcomed by the crypto community. Traders have grown impatient, and are willing to offload their wallets at lower values. If this rout continues, it would imply the likelihood of a price rebound.
ETH Price Forming Bullish Weekly Candle
Investors counted massive losses during August’s sell-off, with Ethereum falling from higher support at $1,800 to $1,545. The capitulation that saw the liquidation of long positions is expected to be the final one as the crypto winter begins ushering in the bull market.
According to Santiment, an on-chain analytics firm, ETH is being moved at a major loss ratio as traders exhibit their frustrations. What this means is that wallets are “disposing of their coins at lower values” and this suggests a “price bounce” is likely in the short term.
As for traders, knowing where and how to position themselves following the sell-off is critical to their readiness for the bull run anticipated in 2024/2025.
Since the immediate support at $1,700 might not hold for long if ETH price delays the upswing above $1,800, those seeking exposure to new long positions in Ethereum may want to consider the confluence support created roughly at $1,630 by the 200-day Exponential Moving Average (EMA) and the ascending trendline.
Another buy signal from the Supertrend indicator as observed on the chart, shows that bulls have control.
The Supertrend indicator is a tool for crypto traders to spot trends and signals. It uses the ATR and volatility to change color and direction. Green means buy Ethereum, and red means sell. The indicator line also acts as a stop loss level.
With the Supertrend trailing ETH price and the confluence support at $1,630, the path with the least resistance is bound to the upside.
Investors should adopt strategies that allow them to change tactics, considering the Money Flow Index (MFI) direction below the midline in the neutral zone and toward the oversold region.
This indicator measures the amount of volume flowing into and out of Ethereum markets. When it is dropping consistently, it sends a bearish signal but assures of an uptrend when it is rising toward the overbought region above 80.
ETH Price Could Soar with ETF Futures Approval
The US Securities and Exchange Commission (SEC) may approve the first Ethereum ETF futures in September according to sources cited in a Cointelegraph article. Some of the companies whose ETF proposals are likely to get the greenlight include ProShares, Volatility Shares, Bitwise, and Roundhill.
Although ETF futures are not the coveted spot ETFs expected for Bitcoin, they show that the agency is getting comfortable with other crypto products. Eric Balchunas, an ETF analyst said that “it indicates that their views/policy/tolerance can change.”
This not surprising to us, we had said they would approve Ether Futures early on in race. Nice to be validated. Now what does it mean for spot? Hard to say beyond it shows that their views/policy/tolerance can change. https://t.co/JXCxNUpj2U
— Eric Balchunas (@EricBalchunas) August 17, 2023
Moreover, the approvals will serve as a market-changing event for Ethereum and possibly provide the liquidity for gains above $2,000 – a move that ETH price requires to mark its bullish comeback.
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.