ETH Approaching Critical $2,000 Level – Will Bulls Rally or Is a Breakdown Coming?
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Despite mid-term challenges for Ethereum’s USD price, inflows into ETH stocks and ETFs could catalyze a rebound from the $2000 level.
This follows a tumultuous month for Ethereum, marked by an 11.6% drop month-on-month, cumulating in a six-month loss of 34%.
However, with renewed activity in the crypto market and a shift towards risk-on sentiment ahead of tomorrow’s FOMC meeting, signs are emerging of a potential local bottom for Ethereum’s price.
This outlook is further bolstered as nation-state actors, like Bhutan, intensify their accumulation of ETH.
Will ETH Stock and ETH ETF Inflows Be The Catalyst For Post-FOMC Recovery Rally?
At the heart of Ethereum’s price trajectory in recent months have been ETH Stock and ETH ETF inflows, which began trading after approval from the SEC back on May 23rd, 2024.
Many have complained of significant outflow volumes underpinning Ethereum ETFs since launch, a move fuelled largely by Grayscale’s slow conversion of its once beloved Ethereum Trust.
While many had anticipated Grayscale’s Ethereum acquisitions to increase following conversion to an ETH ETF, the actual impact has been depressant, with former trust holders actively selling their ETH stocks in a strong near half-billion outflow since May.
Looking more closely at the Ethereum ETF flow this week, the general trend of outflows continues to dominate netflow; however, there are emerging signs of strength – most notably with a shift to inflows for Blackrock’s ETHA ETF and Grayscale’s ETH ETF since last Friday.
Depending on how FOMC plays out over the next 48-hours, and the extent of Powell’s anticipated interest rates cut (potentially the first since 2021), this trickle of inflow to key ETH stocks could cascade into a flood of risk-on excitement.
ETH Price Analysis: Is Ethereum Price USD About to Explode After Upcoming FOMC Meeting September 2024?
As price action battles with lower-trendline support on the mid-time frame, Ethereum Price USD is currently trading at a market price of $2,310 (representing a 24-hour change of +0.66%).
This comes as ETH bulls attempt to recover from troubled price action, which saw ETH price hammer -down 34% since the loss of 200DMA support triggered the formation of a dread death-cross pattern on August 3rd.
Now, over a month later, things are finally looking set for a reversal on the daily chart after an impressive defense of the lower-trendline by bulls, who have established double-bottomed confirmation of support at $2,133.
This sets the stage for a re-test of upside resistance, a move currently progressing well, as Ethereum price USD faces the first major hurdle – descendant 20DMA resistance at $2,389.
A break above this moving average is critical for the survival of the Ethereum price chart structure and could bolster a pushback above the 200DMA – delivering a much-needed golden cross.
Such a move would likely result from a bullish, risk-on FOMC interest rate cut tomorrow between 50-75 BPS – a mark above the 25 BPS decision anticipated by traders.
However, if fears of a shake-out manifest, or if Powell continues to troll the market with indecision, things good get ugly with a plunge below $2,000 on the cards.
Taking consideration of our key indicator, the RSI, it seems momentum favors an upside move, with the RSI reading at 40 – suggesting Ethereum price USD is oversold and ripe for an increase at these levels.
ETH Price Prediction: How High Could Ethereum Price Climb in September?
Overall, an upside move from here would likely see ETH target a recovery to the 200DMA at $3,200 (a possible +38%, while downside risk could see ETH plummet to $2,000 (a potential -13.45%).
This leaves Ethereum price USD with a September risk: reward of 2.86 – a strong entry for allured Ethereum bulls defiant of August’s death cross.
But while ETH might not offer life-changing returns in the short term, this is not a market without opportunities, and perhaps none is more worthy of attention in August than Pepe Unchained.
PEPU Presale Smashes $13.5M Raised in September’s Hottest Layer-2 ICO
While the crypto market has suffered this Summer, meme coins have shown no signs of slowing down as hungry retail investors continue to chase the next big gainer on the market.
Now, ahead of a highly-anticipated launch at the end of Q3, the Pepe Unchained presale has unlocked viral velocity with funding raised rapidly approaching a jaw-dropping $13.5M in organic community support.
But what exactly is Pepe Unchained, and why does it matter?
Far from just another meme coin launch – which has become something of an epidemic following the introduction of pump.fun – Pepe Unchained is a genuine project working on real tangible utility.
At the heart of this is the fact that Pepe is an ERC-20 token, a token standard and chain that is not only increasingly unpopular but also slow and expensive.
Other top-shelf meme coins, such as Shiba Inu, have had a dynamic response to these scalability challenges surrounding Ethereum, with Shiba Inu developer Shytoshi deploying a layer-2 scaling solution named Shibarium last year.
Yet, the same cannot be said of Pepe, which has been slow to respond to challenges, which has led to Pepe Unchained’s creation.
Positioned as a community-fuelled Layer-2 solution, PEPU is positioned as Pepe 2.0.
And amid fever for high-speed, low-cost meme coin trading on the latest and greatest Layer-2 blockchains like BASE and BLAST, there is clear unhinged growth potential for this near $9M market cap project.
So don’t miss out – engage with the Pepe Unchained community on X and Telegram.
