Why is Ethereum (ETH) price up today?

Ether

retested $2,111 on Aug. 5 for the first time since Jan. 3, briefly giving away 98% of its 2024 yearly gains. The ETH/BTC chart also illustrates weakness against Bitcoin

, with the trading pair reaching a 1,211-day low.

Meanwhile, Ethereum ETF inflows recorded a minor netflow of negative 2.9 million on Aug. 8 after exhibiting over $150 million in positive inflows right after Monday’s market rout. The total flow remains negative at $390 million at the time of publication.  

Ethereum rises as crowd’s “primary focus” after dip

Ethereum has regained 27% since hitting Monday’s lows at $2,111, primarily due to the market’s overall recovery.

Bitcoin witnessed a strong rally of 12% over the past 24 hours, and Ether followed suit. Both the assets currently share a correlation index of 0.82 over a 90-day period, suggesting that BTC and ETH are virtually in lockstep. 

Meanwhile, Santiment, an analytics platform, highlighted that the crowd was primarily focused on Bitcoin and Ethereum after Monday’s sharp decline. Ether appeared as a potential buy opportunity, and ETH addresses illustrated this sentiment, as explained in the next section. 

Ethereum addresses add 757K ETH post-dip

According to , an on-chain data aggregator, ETH accumulation addresses with balances between 10-10K ETH and 10K-100K have gradually increased their allocations since July. 

As observed in the chart, the big addresses absorbed a significant amount of ETH selling after Monday’s lows. Addresses with a balance between 10 and 10K added 530K ETH, while addresses between 10K and 100K added roughly 227K ETH after Aug. 5. 

Market to “offer several chances” to buy ETH — Analyst

While Ether has jumped swiftly from its recent lows, the altcoin is expected to consolidate sideways over the next few weeks. According to CrediBULL Crypto, a popular crypto trader, Ethereum will possibly witness “one more marginal lower low,” which will see a retest of support at $2,111.

He highlighted Ethereum’s weakness against Bitcoin as a primary reason. In other words, a minor correction for BTC might trigger a bigger decline for ETH. 

Meanwhile, another popular crypto trader, CryptoPoseidonn, sees the above scenario as an opportunity. He mentioned on X.com,

“The market will bottom in the green and will offer several chances to buy $ETH over the next 2 months.”

Despite the recovery, however, Ethereum’s daily chart is looking bearish. ETH price closed below its long-term bullish trendline (white ascending line), which dates back to October 2023.

Moreover, Ether price dropped below the 100-day and 200-day exponential moving averages (EMA) — blue and orange indicators, respectively. Therefore, ETH/USDT may face resistance between $2,850 and $2,700, which previously acted as a support range in 2024.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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