ETHUSD buyers keep trying to retest all-time high

On August 24, the ETHUSD currency pair updated its nearly 4-year historical high. The price approached the round level of $5,000, but bullish momentum was insufficient to test it. Subsequent profit-taking triggered a strong pullback, though Ethereum remained within its monthly uptrend. A rebound from the channel’s trendline could initiate another growth wave with targets of $4,750 and $4,900.

The 50-day moving average, which coincides with the uptrend on the 4-hour chart, provides additional support for ETHUSD. The MACD indicator, now back in positive territory following a recent correction, also favors further upside. Two similar signals occurred earlier this month, after which Ethereum rallied by 32% and 17%, respectively. The bullish scenario remains the most probable as long as the price holds above $4,400.

It is important to note that retail investors tend to build up their long positions rather than add selling pressure during ETHUSD’s pullback. Since the beginning of the week, more than $900 million has flowed into ETH ETFs. At the same time, more than 600,000 coins have been withdrawn from cryptocurrency exchanges. This indicates that many market players aim to buy the dip and maintain long positions in anticipation of another wave of growth.

Meanwhile, Yahoo Finance analysts highlight capital outflows from Bitcoin to Ethereum. Recently, an unknown investor sold a significant amount of BTC in favor of ETH, totaling $11.4 billion. ETFs backed by the major cryptocurrency have recorded substantial withdrawals as well. They reached $1 billion last week—the first outflow of that scale since March. Under the current circumstances, investors see more potential in Ethereum, given its threefold increase from the lows of April. Over the same period, Bitcoin's appreciation has been four times slower.

Consider the following trading strategy:

Buy ETHUSD at the current price. Take profit 1: $4,750. Take profit 2: $4,900. Stop loss: $4,400.