Ethereum Cruised Past $1500, Is There A Possibility To Retrace To $1200?

The price of Ethereum rallied significantly over the past week to achieve a gain of close to 53%. At the moment, ETH managed to break above the important resistance mark at $1,500 and turn it into a support level. The coin has maintained its rally after crossing the $1,000 mark, and the chance of a correction is still on the horizon.

Bullish force regained steam with buying power also rising. The bearish thesis began to be invalidated as soon as ETH managed to cross $1,200. If the coin stays above the $1,500 mark, the bulls could push the price higher.

The rally was also driven by bullish sentiment swirling around the expected September consolidation. There are chances for the coin to hit $2000 but there are other resistances that ETH must cross for that to happen.

The coin is trading on an ascending trend line and could soon revisit $1,660 on its chart. Today, the global cryptocurrency market capitalization is $1.12 trillion with 4.6% Positive change in the last 24 hours.

Ethereum Price Analysis: Four Hour Chart

Ethereum is priced at $1,600 on the 4-hour chart | source: ETHUSD on TradingView

ETH is trading at $1,600 at the time of writing. The altcoin king has crossed the $1500 mark. The coin’s upper resistance was at $1,660, and strength from buyers could push ETH to touch $1,660. Other significant price ceilings were at $1,745 and $1,800, respectively.

Once the coin crosses the $1800 mark, it could be $2000 on the Ethereum chart. If the coin sees a correction, the first support level would be at $1,300 and then $1,200. Ethereum trading volume increased in the last session which indicates that buying power remains high.

Technical Analysis

Ethereum showed increasing buying power on the 4-hour chart | source: ETHUSD on TradingView

ETH bulls are causing buyers to return to the market. The altcoin has visited the overbought zone several times in the past weeks. The RSI was up and was near the 70 mark which means that there are more buyers than sellers in the market.

Ethereum was above the 20-SMA indicating the same thing that buyers were driving the price momentum in the market. Ethereum stalled above both the 50-SMA and 200-SMA lines which are signs of excessive bullish strength in the market.

Related reading | Ethereum Merge: How ETHBTC Could Hint the Return of Risk Appetite

Ethereum is blinking a sell signal on the 4-hour chart | source: ETHUSD on TradingView

The increased buying power was reflected in the other indicators, but there were mixed signals on the indicators. Moving average convergence divergence depicts price momentum and trend reversals. MACD has undergone a bearish crossover and a flashing red histogram.

These red histograms are an indication of a change in price direction and also a sell signal for the altcoin. The Bollinger Bands indicator which indicates that the volatility is still wide. Broad Bollinger Bands indicate opportunities for increased price volatility which means that Ethereum may be subject to price fluctuations.

Related reading | TA: Ethereum Rally Could Start Again, Why Bulls Might Target $1800

Featured image from UnSplash, chart from

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