Will Ethereum Hold Critical Support At $1,600?

On September 6, Ark Invest made headlines by filing for the first-ever Ethereum spot exchange-traded fund (ETF) in the United States.

This groundbreaking move had only a mild impact on its price, which briefly touched $1,650 the following day before sliding back. The gains stemming from this significant development have almost completely dissipated.

In a separate incident, Ethereum‘s co-founder, Vitalik Buterin, fell victim to hackers who infiltrated his X account, the rebranded Twitter following its acquisition by Elon Musk.

These malevolent actors posted phishing links, attempting to deceive Buterin’s followers with a dubious “commemorative” non-fungible token (NFT) scam. Reports suggest that multiple NFTs were pilfered in the aftermath of the breach.

Remarkably, ETH’s price has remained relatively steady in the wake of this cyberattack. Trading above the $1,600 hard support level reflects the current confidence among bullish investors.

ETH price chart. Source: TradingView

The focus now shifts to key price levels, with $1,655 (the 23.6% Fibonacci level) and $1,730 (the 38.2% Fibonacci level) in sight. However, these levels are contingent on favorable market conditions. If Bitcoin continues in a bearish trend, Ethereum may struggle to maintain its grip on the $1,600 support mark.

In conclusion, Ethereum’s price journey continues to be influenced by market sentiment, with the ETF application and hacking incident serving as recent catalysts. Traders are now closely monitoring crucial price levels as the cryptocurrency market navigates its course.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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