Ethereum Spikes By 26%, ETH Traders Shouldn’t Be Too Excited

Ethereum is turning the corner, looking at the performance in the daily chart. Even despite the dump on August 7, the sharp recovery and push above $2,500 places ETH bulls at a vantage position. It remains to be seen whether the upswing of August 8 will cement buyers’ conviction, lifting prices above $2,800 and $3,000 over the weekend. However, what’s clear is that bulls are rejecting lower lows even as spot ETF issuers redeem millions worth of ETH.

Ethereum is up 26% from this week’s low at spot rates. However, unlike Bitcoin, prices are still held inside the August 5 bear bar. Technically, this is bearish from a top-down preview. Nonetheless, with the injection of strength, bulls can extend gains, which stand at nearly 10% in 24 hours.  As prices rise, trading volume will also likely expand, rising to over $23 billion posted on the previous day.

Traders are closely monitoring the following Ethereum news events:

• Even as Ethereum pushes higher as buyers attempt to align with the trend of Q1 2024, one analyst is confident. In a post on X, he thinks ETH is “super undervalued” and ready for the “big run.”
• Amid the spike on August 8, bulls managed to weather the outflows from spot ETF issuers. Yesterday, all the nine spot Ethereum ETF issuers redeemed 11,059 ETH worth over $28 million. Though some issuers saw inflows, Grayscale alone registered outflows exceeding 16,000 ETH.

Ethereum Price Analysis

At spot rates, ETH/USD is firm, rising, looking at the price action in the daily chart.

While confidence is high, Ethereum is still technically bearish.

Note that the coin is trending inside the bear bar of August 5. At the same time, even with the recent gains, trading volume remains low.

Ethereum will likely break higher should prices float above $2,600 or August 5 highs.

If not, aggressive traders might consider every attempt higher as an opportunity to offload, targeting $2,100.