Ethereum Update: ETH Price Approaches Death Cross, Records Worst August in Half a Decade
Ethereum (ETH) is facing its most challenging August performance in five years, with the potential for a death cross between the 50 and 200-day Moving Averages looming despite a recent moderate recovery. The worst-case scenario for Ethereum’s price has already transpired, but a further retracement before an inevitable rally to an all-time high remains a possibility. Additionally, Ethereum’s daily Relative Strength Index (RSI) persists in oversold territory, marking its lowest level since September of the previous year.
Spot Ethereum ETFs in the United States have seen significant cash inflows, contributing to the recent resurgence in Ethereum prices. Over the past two days, these ETFs have attracted a net cash inflow of nearly $150 million. Notably, BlackRock’s ETHA received around $109 million in net cash inflow on Tuesday, bringing its total holdings to approximately $704 million.
The Ethereum network has been diligently preparing for the widespread adoption of its smart contracts and Web3 protocols in recent years. Out of the total $81 billion locked in the DeFi industry, the Ethereum network accounts for $47 billion. Vitalik Buterin, co-founder of Ethereum, has highlighted substantial improvements in the network through its layer two scaling solutions. However, Buterin emphasized the need for developers to prioritize enabling interoperability between the settlement and consensus layers.
As a leading altcoin in the market, Ethereum’s price has been anticipating a signal for a reversal in Bitcoin dominance on a weekly timeframe. The ETH/BTC pair recently hit a new multi-year low, indicating that the altseason has yet to commence. From a technical perspective, Ethereum’s price has been mirroring a familiar fractal pattern observed in the past two major bull cycles, potentially paving the way for a new all-time high in the fourth quarter. Nevertheless, Ethereum’s overall bullish outlook could face delays if the asset consistently closes below the critical support/resistance level of approximately $2,100.
