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

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Ethereum has risen significantly over the last week, posting a rise of nearly 53%. So far, ETH has managed to overcome the important $1,500 resistance and turn it into a support level. The coin continued to rise after breaking the $1,000 mark, chances of a correction are still on the horizon.

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The bullish power has regained strength as purchasing power has also risen sharply. The refutation of the bearish thesis began when ETH managed to break the $1,200 mark. If the coin stays above the $1,500 mark, the bulls could drive the price higher.

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The rally was also fueled by bullish sentiment around the merger, which is expected in September. There are chances that the coin will rise to $2,000, but there are other resistances that ETH must overcome in order for this to happen.

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The coin is trading on an ascending trendline and could soon return to $1660 on its chart. The capitalization of the global cryptocurrency market today is $1.12 trillion. 4.6% positive changes in the last 24 hours.

Ethereum Price Analysis: 4-Hour Chart

Ethereum
Ethereum was worth $1,600 on the 4-hour chart | Source: ETHUSD on TradingView

At the time of writing, ETH is trading at $1,600. The royal altcoin crossed the $1,500 mark. The upper resistance for the coin was at $1660, the buying power could push ETH towards $1660. Other important price caps were $1,745 and $1,800 respectively.

As soon as the coin breaks the $1,800 mark, $2,000 could appear on the Ethereum chart. If there is a correction in the coin, then the first support level will be at $1,300 and then at $1,200. Ethereum’s trading volume has increased in the last session, which means that purchasing power remains strong.

Technical analysis

Ethereum
Ethereum Shows Increased Purchasing Power on the 4-Hour Chart | Source: ETHUSD on TradingView

ETH bulls forced buyers back into the market. Over the past weeks, the altcoin has visited the overbought zone a couple of times. The relative strength index showed growth and approached the 70 mark, which meant that there were significantly more buyers than sellers in the market.

Ethereum was above the 20-SMA, signaling the same that buyers were driving price momentum in the market. Ethereum was parked above the 50-SMA and 200-SMA lines, which is a sign of excessive bullish power in the market.

| Ethereum Merger: How ETHBTC Could Hint at Return of Risk Appetite

Ethereum
Ethereum fired a sell signal on the 4-hour chart | Source: ETHUSD on TradingView

The increase in purchasing power was reflected in other indicators, but the signals of the indicators were mixed. The convergence-divergence of moving averages displays price momentum and trend reversals. The MACD has undergone a bearish crossover and flashed red histograms.

These red histograms indicate a change in the price trend, as well as a signal to sell the altcoin. Bollinger Bands, indicating volatility, remained wide. Wide Bollinger Bands signal the likelihood of increased price volatility, which means that Ethereum could be subject to price fluctuations.

| TA: Ethereum rally could start again, why bulls might target $1,800

Featured image from UnSplash, chart from TradingView.com



Credit : www.newsbtc.com

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