Will Bullish Momentum Hold for Rally to $1700?

In recent days, the crypto market has been punctuated by a fresh influx of buying interest, catalyzing a relief rally across several leading crypto assets. Ethereum coin, a major player in the digital arena, notably felt an abrupt shift in its prior corrective trajectory, with prices rebounding sharply from the $1550 region. This bullish pivot has enabled ETH price to reclaim its once-breached $1577 threshold, suggesting that market participants accumulate at a discounted price. However, can this revival nurture the seeds of a robust bullish resurgence?

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Trendline Breakout  Push Recovery Rally Beyond $1750

• The rising ETH price may face significant resistance at the overhead trendline
• A $1,500 mark stands as a strong support zone
• The intraday trading volume in Ether is $3.8 Billion, indicating a 6% gain.

Source- Tradingview

This uptick in sentiment has propelled Ethereum price upwards from the $1550 base, culminating in a commendable 5.7% appreciation over a span of five days. However, an intraday pullback of 0.23% saw ETH valuation retract slightly to a prevailing price of $1638, momentarily pausing its recent bullish escapade. 

Should the current bullish undertone endure, this altcoin might soon grapple with a descending resistance trendline that has been orchestrating its price movements over the past couple of months. This pivotal barrier has twice repulsed ETH price ascent, suggesting traders might encounter significant selling pressure at this juncture.

A pronounced retreat from this level could signify a resumption of the bearish narrative, possibly plunging the coin’s valuation to the $1,500 benchmark. Consequently, a decisive breach above this formidable trendline is pivotal to affirm a bullish recovery.

Should One Buy at the $1500 Dip?

The dwindling volume amidst the ongoing upswing hints at a waning bearish conviction. As such, the Ethereum coin might face a setback from its looming resistance, potentially triggering an 11.5% retracement. But, the $1500 region coincides with a longstanding ascending trendline that has been the bedrock of buyer support for over a year. This alignment underscores its significance as a robust entry point for buyers during market downturns.

• Bollinger Bands: The lateral movement of the Bollinger Bands‘ upper boundary suggests it could act as a potential resistance, potentially stalling altcoin’s current relief rally.
• Moving Average Convergence Divergence: Even with Ethereum price charting a lower low, the MACD indicator presents a higher low, suggesting an increasing bullish undercurrent.