Ethereum (ETH) price is en route to registering its worst August performance in the past five years. Despite the decent rebound in the past two days, the Ethereum price is about to register a death cross between the 50 and 200-day Moving Averages (MAs).
However, the worst-case scenario for Ethereum’s price action has already happened, but another retrace before an inevitable rally to an all-time high could happen soon. Furthermore, Ethereum’s daily Relative Strength Index (RSI) continues to hover in the oversold territory, the lowest level since September last year.
Impressive Performance by Spot Ethereum ETFs
The notable cash inflows to the U.S. spot Ether ETFs have bolstered the recent Ethereum price rebound. In the past two days, the US spot Ether ETFs have registered a net cash inflow of nearly $150 million.
On Tuesday, BlackRock’s ETHA registered a net cash inflow of about $109 million, thus currently holding a total of about $704 million.
Network Status
In the past few years, the Ethereum network has thoroughly prepared for the mass adoption of its smart contracts and Web3 protocols. Out of the $81 billion in total value locked in the entire DeFi industry, the Ethereum network accounts for $47 billion.
According to Ether’s cofounder Vitalik Buterin, the Ethereum network has significantly improved through its layer two scaling solutions. However, Buterin emphasized that the developers need to focus more on enabling interoperability between the settlement and consensus layers.
What Next for ETH Price Action
As the lead altcoin in the industry, Ethereum price has been waiting for a reversal signal of the Bitcoin dominance in the weekly time frame. Notably, the ETH/BTC pair recently broke down to a new multi-year low, signaling the altseason has not yet begun.
From a technical standpoint, Ethereum price has been forming a similar fractal pattern with the past two major bull cycles. As a result, Ethereum’s price could break out to a new all-time high in the fourth quarter.
However, Ethereum’s macro bullish outlook could be delayed if the asset consistently closes below the crucial support/resistance level of around $2,100.
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