Ethereum price has been showing signs of strength in the past week, as the second-largest cryptocurrency by market cap broke above the $1,600 resistance level, which had been a major hurdle since July.
The bullish momentum was fueled by the news that Grayscale Investments, the largest digital asset manager in the world, filed for a new Ethereum futures exchange-traded fund (ETF) with the US Securities and Exchange Commission (SEC).
Ethereum Price Weekly Analysis
The weekly analysis shows that Ethereum has been trading in a range between $1,700 and $1,600.
However, on September 15, Ethereum price broke out of the triangle and closed above the $1,600 resistance level, which had been acting as a strong barrier since July. The breakout was accompanied by a significant increase in volume, indicating strong buying pressure.
The relative strength index indicator (RSI) has also risen above 50, signaling that the bulls have regained control over the market. However, the RSI is also approaching the overbought territory, suggesting that the price is overvalued and could be due for a correction.
The next resistance level for Ethereum price is at $1,800, which is the 23.6% Fibonacci retracement level of the decline from May to July. The next support level is at $1,500, which is the lower boundary of the breakout range.
Ethereum Price Daily Chart
The daily chart shows that Ethereum price has been forming higher highs and higher lows since September 9. The price has also been trading above the 50-day and 200-day simple moving averages (SMAs), which are bullish signs.
On weekly timeframe level the price action of $ETH is playing according to the pattern level we have marked.
We can expect some bullish momentum before any downwards movement.
A daily close below the lower boundary of the channel could confirm a bearish breakdown and trigger a deeper correction. The first target for the bears would be the 50-day SMA, which is currently at $1,550. The second target would be the 200-day SMA, which is currently at $1,450.
Ethereum Price Outlook
Ethereum price has been enjoying a rally in the past week, driven by several factors such as Grayscale’s ETF filing, Polygon’s launch of phase 0 towards Polygon 2.0, and Ripple’s expansion of its liquidity hub to Brazil and Australia. However, the price is also showing signs of being overbought and overextended, and could face a correction soon.
The bulls need to keep Ethereum price above the ascending channel and push it above $1,800 to maintain the uptrend and target higher levels. The bears need to break Ethereum price below the channel and drag it below $1,500 to initiate a reversal and target lower levels.
Ethereum News Roundup
Some of the latest news stories that could impact Ethereum price are:
- Grayscale Files for New Ethereum Futures ETF: Grayscale Investments, the largest digital asset manager in the world with over $40 billion in assets under management (AUM), has filed for a new Ethereum futures ETF with the SEC on September 14. The ETF would track CME’s Ether futures contracts and provide exposure to ETH without requiring investors to hold or store the cryptocurrency. The filing comes amid growing anticipation for a spot Ethereum ETF approval in the US.
- Polygon Launches Phase 0 Towards Polygon 2.0: Polygon, one of the most popular scaling solutions for Ethereum, has launched phase 0 of its roadmap towards Polygon 2.0 on September 16. Phase 0 includes three proposals to enhance Polygon’s scalability, security, and interoperability: Polygon SDK v2, zkEVM Rollups, and Polygon Avail. Polygon 2.0 aims to become a fully decentralized platform for Web3 applications.
- Ripple Opens Up Liquidity Hub to Brazil & Australia: Ripple, one of Ethereum’s main competitors in cross-border payments, has announced that it will expand its Liquidity Hub service to Brazil and Australia on September 17. Liquidity Hub allows financial institutions to access crypto liquidity from various sources and offer their customers the ability to buy, sell, and hold digital assets. The service currently supports six cryptocurrencies, including ETH.
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