Ethereum Price Poised for Major Rally: Will $2,800 Weekly Close Trigger a Surge to $3,600?
Ethereum Price– The Ethereum (ETH) price chart is signaling a potential rally to levels not seen since the launch of spot Ether exchange-traded funds (ETFs) in July. However, analysts believe that a weekly close above $2,800 is crucial to confirm this bullish move.
Crypto analyst Matthew Hyland emphasized the importance of this level in his August 24 analysis video, stating, If Ethereum can close a weekly above $2,800, I do think Ethereum is going to see a major push toward this upper $3,500, $3,600 area, which will also propel the alts. Currently, ETH is trading at $2,758, following a week of consolidation around $2,600 since August 17, according to CoinMarketCap data.
Potential Impact of a Price Drop to $2,600
A drop back to $2,600 could have significant implications, potentially wiping out $1.07 billion in long positions. On the other hand, a comparable move upward could bolster trader confidence, with only $400 million at risk, according to CoinGlass data. This disparity highlights the cautious optimism among traders as they watch ETH’s price movements closely.
Analyst Perspectives: Is a Rally Imminent?
While the market conditions for a rally appear to be forming, Real Vision’s chief crypto analyst, Jamie Coutts, expressed some reservations. In an August 23 post on X, he noted that Ethereum’s network activity needs to increase for a substantial rally to occur. While the conditions for a rally are forming, Ethereum will struggle to rally without a resurgence in activity. Fees are at 4-year lows, Coutts pointed out. He also emphasized the strong adoption of layer-2 networks and the upward trend in global liquidity as positive factors.
Contrasting Views: Ethereum’s Fundamental Strength
Not all analysts share the same level of caution. Boomer Saraga, founder and CEO of Khelp Financial, believes that Ethereum’s onchain activity suggests the network is nearing peak performance, with the price being the lagging factor. From a fundamental standpoint, Ethereum is reaching all-time highs, and I expect the price to follow, Saraga explained. Despite the optimistic outlook on Ethereum’s fundamentals, it’s worth noting that ETH has been in a significant downtrend, dropping 19.72% since the launch of spot ETFs in the U.S. on July 25.
Technical Analysis: What Do the Charts Say?
Veteran trader Peter Brandt recently analyzed Ethereum’s price action, presenting two potential scenarios based on two chart patterns: a five-month rectangle and a rising wedge. In the first scenario, ETH could rise above $2,960, providing an ideal exit position for long positions. Conversely, the second scenario involves a breakdown of the rising wedge, continuing the downtrend and potentially sending ETH to $1,650, the bearish target of the rectangle pattern.
Conclusion: What’s Next for Ethereum?
As Ethereum hovers around the crucial $2,800 level, traders and analysts alike are closely monitoring the situation. The next few weeks could be pivotal in determining whether ETH breaks out towards $3,600 or continues its downtrend. Investors should keep an eye on network activity, onchain metrics, and broader market conditions to make informed decisions.
FAQs
What is the significance of Ethereum closing above $2,800?
Closing above $2,800 is considered a key indicator for Ethereum. According to analysts, if Ethereum manages to maintain a weekly close above this level, it could signal a strong bullish trend, potentially pushing the price towards $3,500-$3,600. This could also influence other cryptocurrencies positively.
How does Ethereum’s network activity affect its price movement?
Ethereum’s network activity plays a critical role in its price movement. Analyst Jamie Coutts mentioned that a resurgence in network activity is necessary for a significant price rally. Low fees and high layer-2 adoption are positive signs, but a lack of activity could hinder potential price increases.
Leave a comment