Consistent with the earlier projection, Ethereum prices maintained their ascent, hitting levels not seen since December 2024. However, as the 4,000 threshold drew near, buyer enthusiasm waned, causing ETHUSD to trade sideways. A similar consolidation following a strong upward trend was previously recorded between mid-May and early July. Despite a slight delay, the flag pattern ultimately extended the preceding upward trajectory. A similar situation might happen again this time.
If the local low at 3,400 is breached, the 4-month uptrend on the daily Ethereum chart could serve as support. Sellers may also encounter resistance at the 50-day moving average, currently hovering around 3,200. The RSI indicator has exited overbought territory and turned upward, favoring another wave of ETHUSD growth. The prior consolidation phase was long. Breakout attempts from the current range are likely to intensify in late August.
With the crypto market experiencing a lull, now is a great time for companies to step up their game and boost their holdings. According to Reuters, financial institutions have multiplied their Ethereum investments by over eightfold since January. By late July, these firms held crypto assets worth $3.5 billion. The market lacks strong trends. However, Ethereum has gained an edge over Bitcoin by offering an extra 3–4% yield through staking.
The bullish outlook for ETHUSD is supported by record-breaking network activity, with daily transactions surpassing 1.55 million—a new all-time high. Although the price has not yet reflected this surge in usage, a delayed response is expected. On top of that, more money coming into US Ethereum-based ETFs has given the market a boost, making it even more likely that prices will keep climbing.
The following trading strategy may be in sight:
Buy ETHUSD at the current price. Take profit: 4,000. Stop loss: 3,400.
This content is for informational purposes only and is not intended to be investing advice.
