Ethereum prices are firm when writing, steadying on the last trading day but up 13 percent week-to-date versus the USDT. Technically, buyers have the upper hand, and ETH is trading in a bullish breakout formation.
Clearly, from the daily chart, the rejection of lower prices on August 2 confirms July 27 and 28 bulls, another indicator that there could be more upside for the second most valuable asset. As ETH prices bottom up, the immediate support is at around $1.4k while resistance is at $1.77k.
A close above the latter may signal strength and spur demand that could see ETH explode towards $2.3k and early May 2022 territory.
Coinbase Supports ETH Staking
The recovery is at the back of positive news ahead of the highly anticipated Merge.
Coinbase, one of the oldest cryptocurrency exchanges in the U.S., announced its plans to permit institutional staking of ETH only for domestic firms. The proof-of-stake Ethereum network currently locks $27.9 billion of ETH, allowing stakers to earn passive income as they decentralize and strengthen the network.
Earnings stand at around four percent APY, a figure significantly higher than what’s offered in traditional savings accounts. The relatively high APY incentivizes stakers to lock their assets with an opportunity to earn block rewards should the protocol select their node.
Support from Coinbase is a solid endorsement and is timely before Ethereum officially switches from the proof of work consensus to the more energy-efficient and relatively secure proof of stake in September 2022.
Ethereum Price Analysis
ETH is bottoming up with the August 2 bar closing with a long lower wick suggesting demand in lower time frames.
Since prices are still within the July 27 and 28 bull bars, rejecting liquidation attempts below the middle BB, and broadly within the bullish breakout formation above $1.25k, traders may load the dips above $1.4k, the immediate support level. The primary target, as mentioned earlier, will be $1.77k or July 2022 highs.
Any break above this liquidation level with rising trading volumes will confirm last week’s gains, anchoring the next leg of higher highs towards $2.3k in the medium term. Conversely, any contraction below $1.4k forcing ETH below the middle BB may see prices tumble back to $1.25k in a retest.
Technical charts courtesy of Trading View
Disclaimer: Opinions expressed are not investment advice. Do your research.
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