- Summary:
- Ethereum price has retested the $1,600 mark and its momentum metrics signal a likely continuation of the upside.
Ethereum price has stayed above the psychological $1,500 support for the third successive session, adding weight to a likely reversal. ETH has risen by 3.36% in the last two sessions, with its DeFi Total Value Locked (TVL) gaining 1.88% in the last 24 hours. That has helped the coin to build traction and raise the prospect of retesting $2k mark.
The downside to Ethereum’s price rise is the 34% drop in trading volume in the last 24 hours. That signals declining buying appetite, which will limit the coin’s upside potential. However, the outlook for institutional purchases of Ether has received a significant boost this week after Securities and Exchange Commission (SEC) approved options trading for spot Ethereum ETFs, including products by Grayscale, BlackRock and Bitwise.
Meanwhile, multiple news outlets have reported that Ethereum Founder Vitalik Buterin gave a roadmap for improving privacy in the network. The roadmap include the introduction of private access to on-chain data, private payments, private on-chain reads (Remote Procedure Calls) and in-app anonymization. These improvements could attract a new class of clientele who place a high value on privacy in their financial transactions.
However, the near-term performance of Ethereum price momentum will likely be limited by a weak performance in the ETF market. According to Coinglass data, Ethereum spot ETFs reported net negative flows in the last four successive trading sessions, with Friday’s session having -$29.20 million. However, the suspension of trade tariffs by the United States has sparked investor confidence that could see next week’s trades return to the positive side.
Ethereum Price Forecast
Ethereum price pivots at $1,555 and the momentum favours the upside to continue if action stays above that level. That momentum will likely meet initial resistance at $1,615. An extended control by the buyers will break above that level and could test the second barrier at $1,678.
Conversely, breaking below $1,555 will shift the momentum to the downside. That will likely see the first support established at $1,492. The upside narrative will be invalid if the price breaks below that level. In addition, that could clear the path to test the second support at $1,438.
