Ethereum At A Crux: After A 23% Surge, Will ETH Break $3,000?

Ethereum is moving sideways but bullish. A close above August 5 high and $2,700 could trigger a bull run to $3,000

Dalmas Ngetich•Monday, August 12, 2024•2 min read

Ethereum, mirroring the performance of top altcoins, remains flat, looking at the formation in the daily chart. So far, ETH is within a bullish formation, but there must be decisive gains for the uptrend to remain. If not, and sellers flow back, the downtrend of early August 2024 will likely be re-established, drawing the spanner to bulls’ work. Thus far, August 5 and 8 highs are immediate liquidation levels that must be broken at the back of rising volumes.

Presently, ETH is moving sideways inside the conspicuous bull bar of August 8. As it is up 23%, bulls have the upper hand, though losses in the past day are still pronounced, nearly 4%. Even so, the trading volume, due to the low activity over the weekend, remains subdued at just over $15 billion.

Ethereum Daily Chart for August 12

The following trending Ethereum news events are worth monitoring today:

While there is excitement about ETH price action, gas fees continue to plunge. Trending at around 0.8 gwei, it is at a multi-month low, highlighting the dropping on-chain activity. Even so, falling gas fees could also be due to the Dencun upgrade, which lower layer-2 transaction costs.
Last week, coinciding with rising ETH prices, spot Ethereum ETF inflows surged to $105 million. While it is lower than what BTC recorded at this time after launch, it means interest remains even with prices falling.

Ethereum Price Analysis

ETH/USD is under pressure when writing.

Unlike Bitcoin, which flew higher last week, buyers are yet to rewind the losses of August 5.

Notice that the August 8 bar was wide-ranging but didn’t close above $2,800. Worse, it didn’t erase the losses of August 4, which triggered the sell-off.

For this reason, aggressive traders can wait for a breach of $2,800 before committing and targeting $3,300.

If not, the probability of ETH sliding even lower, aligning with the losses of August 5, remains.

Losses of August 8 gains will see the price dump harder, perhaps breaking $2,000.