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The king of Altcoins has shown strong stability after the recent market crash. After experiencing the recent crash on August 5th, ETH is recovering and is now trading at $2,650.34 marking a 3.96% increase in the last 24 hours and a 5.60% gain in the last 7 days.
The entire crypto market faced the crash in early August, with ETH dropping to a low of $2,116. This decline was attributed to recession fears and geopolitical tensions between Iran and Israel and also the unfavorable NFP data that was released on the first Friday of the month. However, bulls managed to defend this crucial support level preventing further price drop.
Interestingly the $2,116 level corresponds to a support level of a descending channel that saw a breakout on May 20th leading to a rally that peaked at $3,973. Since reaching this high ETH experienced a correction falling by over 45% before finding the support.
Ali Martinez, a prominent crypto analyst highlighted the importance of the $2,314 to $2,435 range as a key support level as seen in our last report. According to Martinez, this zone is where 2.14 million addresses acquired 51.67 million ETH suggesting strong buyer interest.
Chart patterns are also providing insights into possible future price movements. Martinez noted the formation of a bull pennant on lower timeframes suggesting a potential 4% rise towards $2,820. This target aligns closely with the next significant resistance level at $2,863.
Technical indicators are also showing a building bullish momentum. The Relative Strength Index which is a momentum indicator has moved out of the oversold region of below 20 and currently sits at 40. This shift often signals a potential bullish reversal or renewed upward momentum.
A recent tweet has also highlighted the behaviour between Ethereum's current status and Bitcoin's post-ETF trading pattern. Bitcoin's breakout above the $41,000 resistance led to a massive bull rally reaching recent all-time highs of $73,780. If ETH can convincingly break above the $2,863 resistance zone it could trigger a similar bullish run.
Institutional interest in Ethereum appears to be growing. Recent data from Cointelegraph indicates that ETH exchange-traded products have attracted increased institutional investment over the past week outpacing even Bitcoin in terms of recovery.
From a broader market outlook, Ethereum market capitalization is at $318.6 billion while the 24-hour trading volume stands at $21.9 billion, a 47.39% increase in total market activity.
As Ethereum approaches this key resistance level, all eyes will be on whether it can maintain its current momentum, break above it and potentially start a new bullish phase.
