Ethereum Consolidates: Will ETH Bulls Break Above $2,700?

Ethereum remains within a bearish formation, at least for now. Notice that the coin is still trending inside the bear bar of August 8. However, the higher highs posted over the last two days may ignite demand, lifting sentiment. A firm close above August 5 highs, at the back of rising volume, may be the base for another wave of buying pressure that may see Ethereum soar to multi-week highs. For now, the zone between $2,100 and $2,500 remains critical.

The sideways chop seen in Ethereum reflects how it has been performing in the past day and week. So far, the coin is stable but in the green over the last week, adding 6%. Even though there are pockets of strength, there must be a decisive close above the local liquidation level, as mentioned earlier. Trading volume must swell for this to happen and the leg up to remain. Should bulls take over, a close above $2,700 must exceed trading volume registered in the past day at around $21 billion.

Traders are closely monitoring the following Ethereum news:

• Despite the market-wide sell-off and consolidation, on-chain data shows that whales have been accumulating. By the end of last week, they had bought over 750,000 ETH, a mark of confidence in what lies ahead.
• The Ethereum ecosystem continues to scale, thanks to the proliferation of layer-2 protocols. Data shows that layer-2 platforms have scaled by a factor of 24X—a signal of adoption.

Ethereum Price Analysis

ETH/USD is consolidating, looking at the daily chart.

The bull bar of August 8 is crucial.

Every low may offer entries for aggressive traders targeting $3,000 and $3,300.

However, as mentioned earlier, traders can wait for a clean close above $2,700 on August 5 before committing.

On the flip side, any close below $2,200 and August 5 lows may signal weakness, forming the base for another leg down to $1,800.