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Ethereum Bounces-off $1,600 Support: Time to Buy Now?

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Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
By Arslan Ali Butt
author
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
on September 18, 2023 | 2 min
Updated on Sep 19, 2023
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  • Ethereum’s price, mirroring Bitcoin’s movements, faced resistance at $1,650. Although it surpassed the $1,620 barrier, it struggled to confidently breach the $1,650 mark.
  • After retracting to below $1,630, Ethereum demonstrated signs of recovery, moving past a bearish trend line and positioning itself above $1,625. Key resistances are identified at $1,635 and the significant $1,650 level.
  • While a successful move above $1,670 might lead to a bullish rally targeting $1,750 and potentially $1,880, failure to clear $1,650 could trigger a decline, testing supports at $1,610 and $1,585 and potentially dropping to near $1,520.

Ethereum, the second-largest cryptocurrency by market capitalization, recently rebounded from the $1,600 support level, igniting discussions among investors and traders. As ETH demonstrates resilience at this critical support zone, many are now speculating whether this is an opportune moment to enter the market. With the crypto landscape constantly evolving and numerous external factors influencing price movements, it’s essential to dissect the current market dynamics to determine if now is indeed the right time to buy Ethereum.

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ETH/USD Price Chart
ETH/USD Price Chart – Source: Tradingview

Ethereum Price Prediction: Technical Outlook

In relation to the US Dollar, Ethereum’s price encountered a barrier around $1,650. While ETH managed to progress beyond the $1,620 resistance, it lacked the momentum to decisively breach the $1,650 threshold, mirroring Bitcoin’s movement patterns.

After a minor retracement subduing the price beneath $1,630, a fleeting dip below the $1,620 was observed, although significant declines were averted. Ethereum’s lowest point settled around $1,613, but indications now suggest an upward trajectory. Notably, the cryptocurrency has surpassed the 23.6% Fibonacci retracement level of its recent oscillation from a peak of $1,652 to its trough at $1,613.

 

Furthermore, the ETH/USD has manoeuvred beyond a significant bearish trend line, previously resting at $1,625, as evidenced on the ETH/USD hourly chart. Presently trading above its 100-hourly Simple Moving Average, Ethereum has positioned itself over the $1,625 mark.

 

Potential hindrances might emerge near the $1,635 level, aligning with the 76.4% Fibonacci retracement level from its recent movement between $1,652 and $1,613, stationed at $1,642. The pivotal $1,650 level remains a noteworthy resistance. A conclusive ascension beyond $1,650 could pave the way towards the $1,670 zone.

If Ethereum solidifies its position above $1,670, a significant bullish surge may ensue, targeting the primary obstacle at $1,750. Surpassing this could further elevate ETH, setting sights on the $1,880 mark.

 

However, if Ethereum grapples with the $1,650 resistance, a potential downtrend could be initiated. Immediate foundational support is discernible around $1,620, with more robust supports near $1,610 and subsequently at $1,585. A breach below the latter could catalyze a pronounced bearish phase, possibly steering Ethereum towards the vicinity of $1,520 in the foreseeable future.

Stay tuned for more updates!

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About Arslan Ali Butt
Arslan is an expert live webinar speaker and derivatives analyst, specializing in cryptocurrencies, Forex, commodities, and indices. He holds an MBA in Finance and an MPhil in Behavioral Finance from the University of Gujrat (UOG), Pakistan. With many years of experience in cryptocurrency and Forex trading, Arslan currently focuses on cryptocurrency price predictions and forecasts. Arslan has previously worked with several brokerage firms’ Forex and cryptocurrency trading teams, managing client exposure risk. Arslan has worked at CAPEX.com and NatureForex.com, among others.
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