The Ethereum (ETH) prices briefly spiked on August 1, reversing from crucial support levels, as bulls rejected attempts for lower lows. However, prices are within a small range when writing and technically bearish from a top-down preview.
For the uptrend to be valid, there must be a firm bullish bar breaching $1,900, ideally with expanding volumes. In that case, there could be room for ETH to float to $2,000 or better in subsequent sessions.
As it is, there is uncertainty considering the consolidation and inability of bulls to conclusively drive prices above immediate liquidation levels. Overall, buyers stand a chance as long as ETH is above the $1,800 and $1,820 support zone.
MemeCoins, Base, and Ethereum
Ethereum scaling efforts are still being conceptualized, albeit at a slower pace. From now on, layer-2 platforms will be critical in relieving the base layer from transaction deluge.
Still, this might reduce Ethereum’s revenue for validators who secure the platform and validate blocks. The frenzy around meme coins recently forced activity to Base, the Coinbase-backed layer-2 platform that’s still in development.
Although open for builders only, it didn’t prevent scam artists from creating meme coins and rugging traders who got in late.
Besides BALD, which Sam Bankman-Fried allegedly created, there were over 25 other meme coin projects which were all rugged, costing traders millions. The rise of meme coins like PEPE, in April through May, has led to high gas fees on the Ethereum mainnet.
Ethereum (ETH) Price Analysis
Ethereum prices temporarily crashed to $1,820 on August 1 before bouncing to spot rates. The long lower wick suggests that demand at the tail end of August 1 was with rising demand. This could spill over to today.
Notably, trading volumes are relatively high, pointing to trader interest. Accordingly, the possibility of a bullish breakout in a buy trend continuation formation looks high. Despite the rejection of higher highs as visible on early August 2.
At this point, Ethereum prices may break above $1,900, a development that, if accompanied by rising volumes, may allow risk-off traders to buy the dips, targeting July 13 highs of around $2,000.
Any break below $1,820 will cancel this bullish projection.
Technical charts courtesy of Trading View.
Disclaimer: The opinions expressed do not constitute investment advice. If you wish to make a purchase or investment we recommend that you always conduct your research.
If you found this article interesting, here you can find more Ethereum news.
