Ethereum, like most altcoins, faces significant selling pressure and is struggling to overcome the weakness seen in early August. Despite some strength after the sell-off on August 5, prices remain below $2,800. Positively, bulls have shown resilience, maintaining prices above $2,500, which analysts consider crucial for the uptrend.
Analysts emphasize that holding the $2,500 level is vital. This price point represents the base of a bull flag, indicating potential market strength. Recent price action shows resistance at $2,700 and $2,800, with clear support at $2,500. If prices stabilize above this level, Ethereum could reach $3,150 soon.
Another factor that could drive Ethereum’s recovery is the inflow into spot Ethereum ETFs. Since spot ETFs were approved in July, institutional interest has grown, with inflows exceeding $2 billion. BlackRock’s iShares Ethereum ETF is notably driving demand during this period.
Additionally, Ethereum’s ecosystem growth, such as reduced gas fees on the mainnet and layer-2 solutions like Base, could support price increases. Efforts by Arbitrum and Optimism towards greater decentralization are also seen as positive developments, although Optimism reverted to a centralized fault-proof system following an audit.
