“Ethereum’s impressive flip of $1619 to support signals a strong upward momentum, leaving traders wondering if it’s just the beginning of a potential surge towards $1700.”
Ethereum (ETH) continues to experience a bullish rally, surpassing the $1,619 resistance level. This upward momentum has resulted in a 5.7% increase from the previous support level of $1,550. The recent surge in Bitcoin (BTC) price, reaching $30k, could further motivate ETH bulls to push for more gains, especially with on-chart indicators displaying bullish signals.
The strong defense at the $1,550 support level served as an excellent entry point for buyers during the recent price rally. Alongside the positive market sentiment, ETH has successfully reclaimed the $1,619 level after a previous rejection on October 16th.
Bulls have set their sights on the $1,700 price zone as their long-term target. However, they will need to overcome the $1,680 hurdle in the short term. As of now, the chart indicators remain bullish.
The Relative Strength Index (RSI) indicates strong buying pressure with a reading of 61. Similarly, the Chaikin Money Flow (CMF) has remained above the zero mark, suggesting decent capital inflows. These factors strengthen the belief in a bullish market for ETH.
Given the current conditions, bulls have a 3% long opportunity from the current price of $1,634 to the $1,680 price zone. Successfully surpassing this hurdle could lead to the achievement of the $1,700 target.
However, should the price be rejected at $1,680, the bullish rally may lose momentum, resulting in a pullback to the $1,619 support level.
In addition to the positive price action, ETH whales are accumulating more tokens. According to Santiment, the Mean Coin Age (90d) has been increasing, indicating increased investor accumulation. Furthermore, the supply on exchanges has declined, suggesting a decrease in selling pressure. These factors support the expectation of further gains for ETH in the short term, while also preparing for an extended bullish rally towards $1,700.
Please note that the information presented in this blog does not constitute financial, investment, trading, or any other form of advice. It is solely the opinion of the writer.