Although the recent launch of the Ethereum ETF did not immediately drive its price up, optimism in the market remains strong, indicating that ETH may see further gains this week.
ETH price volatility rises but momentum recovers
Although the price of Ethereum experienced a small correction of 3.15% in the past week, this trend did not last long. In the past 24 hours, the price of ETH rebounded strongly, up 4.84%, with a trading volume of 11.076 billion US dollars and a 24-hour high of 3,384.53 US dollars. This performance not only demonstrates the market resilience of Ethereum, but also adds more uncertainty to its subsequent trend.
Technical analysis reveals underlying trends
From a technical perspective, Ethereum has formed a clear descending channel pattern on the 1D timeframe and has been trading within this channel since mid-May. This partly reflects the long-term bearish sentiment in the market. However, it is worth noting that after a recent breakout, ETH price formed an ascending channel pattern again, showing a significant increase in buying pressure in the short term. Looking further at the Relative Strength Index (RSI), the indicator is rising sharply above the midpoint and the average trendline is showing a potential positive crossover. These are signs that Ethereum prices are expected to continue rising this week. At the same time, the red histogram of the MACD indicator continues to fall, and the possibility of bullish convergence appears in the 1D time frame, further confirming the market situation in which buying pressure exceeds selling pressure.
August Price Outlook
Ethereum prices face two very different directions. On the one hand, if the market continues to maintain the current bullish sentiment, ETH prices are expected to break through the $3,700 resistance level and move towards the $4,000 target. The achievement of this goal will not only be an affirmation of Ethereum's technical strength and market recognition. On the other hand, if the short forces regain the upper hand, Ethereum prices may experience a correction in the coming weeks and fall to the key support level of around $2,800. Although this scenario is worrying, it also provides enthusiasts with an opportunity to enter at a low level.
Conclusion
In summary, the price trend of Ethereum (ETH) in August will depend on the fluctuations in market sentiment and changes in technical aspects. Investors should pay close attention to changes in market dynamics and technical indicators to formulate appropriate strategies. No matter how the price fluctuates, it is crucial to remain calm and rational. After all, the cryptocurrency market is full of uncertainties and opportunities, and only those who can flexibly respond to changes can laugh at the end.
(Personal opinion, not a recommendation)
In the crypto industry, if you want to seize the next bull market opportunity, you need to have a high-quality circle
If you want to dig deeper in the circle, but can't find the direction, want to join, or consult, you can see the main leaf
If you like it, please follow us for more articles.
May every encounter start with friendship!
