Ethereum News: Will ETH ETF Surge Push ETH Price Above $3,500 in August?

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Ethereum ETFs launched on July 22 with a bang, amassing over $4 billion in trading volume during their first week. This significant activity has set the stage for a potentially major boost in ETH price.

As the market turns bullish, what’s next for Ethereum?

Current Market Scenario 

After the ETFs hit the market, Ethereum experienced initial outflows, plunging by 13.37% from July 22 to July 26 as traders took profits. However, the mood shifted dramatically on July 27 following Donald Trump’s supportive speech at the Bitcoin Conference 2024, Nashville, which sparked a bullish turnaround. By July 29, ETH had climbed above $3,345, marking an 8.74% increase in just three days.

According to TheBlock, the strong debut of all 9 ETFs, with a combined $4.05 billion in trading volume, has injected fresh liquidity into the Ethereum market. This, coupled with rising investor interest, suggests that ETH could push toward the $3,500 resistance level in the coming days.

Historical Pattern 

However, despite the bullish indicators, the first week got mixed results; ETH dropped before a rise, which is historically a bull sign. This pattern mirrors Bitcoin’s post-ETF dip in January, where a temporary drop helped shake out weaker investors. Historically, following Bitcoin’s rally to new all-time highs in February, Ethereum could see similar growth in August. The correction appears part of a broader market pattern, with potential for recovery and gains.

Analysing Technical Indicators

Technical indicators are also looking bullish. The Ichimoku Cloud suggests a potential upward trend, with ETH aiming to break above key resistance levels at $3,349 and $3,500. If successful, ETH could rally toward $3,800. On the other hand, the Choppiness Index (CHOP) at 47.80 suggests short-term correction, indicating the potential for an upcoming trend shift. However, the market is also consolidating, with support levels at $3,226 and $3,278 providing crucial baselines.

The Relative Strength Index (RSI) sharply rises above 50 at the midpoint. Further, its average trendline shows a potential positive crossover, suggesting that the price will continue gaining value this week.

Surge in Open Interest and Future Volatility

Ethereum is trading near $3,400, marking a notable 4.8% increase in the past 24 hours. Recent data from CryptoQuant reveals a $1.5 billion surge in ETH open interest over the last three weeks, signaling a rise in leveraged trading. This increase in open interest often leads to heightened volatility and potential liquidations. As a result, the Ethereum market might experience greater fluctuations in the coming week.

The crypto community stands at the brink of a year filled with anticipation. Will ETH hit a New ATH in August? We’re excited – are you?