Ethereum Ready for a Moonshot, ETH/USD Prices Set for $2.9k?

To appreciate Ethereum is to relish its dApp density, infrastructural superiority, and how it outperforms BTC in both activity and price.

As of writing, the Ethereum price is up double digits in the last week of trading, temporarily recoiling on the previous trading day.

For perspective, ETH is down two percent (which isn’t out of the ordinary) and up 11 percent week-to-date at spot rates above $2.48k.

Technically, ETH buyers are in the driving seat. The uptrend has been established despite the current retracement from around June and July 2021 highs.

London Hard Fork influencing Ethereum Market Performance

Overall, the rebound of ETH/USD prices at the tail end of July 2021 must be applauded.

It was the much-needed shot in the arm for optimistic buyers, banking on the future expansion of ETH prices on the platform’s lead in DeFi—and all innovations around blockchain, including NFTs.

The past is packed with sufficient evidence. For instance, the 2017 mega spike was due to ICOs, while the 2020-2021 rally was primarily due to the proliferation of DeFi and NFTs.

Fundamentally, there is room for more upside considering the activation of EIP-1559 through the London hard fork set for Aug 4. In the long run, it makes ETH scarce, a net positive for holders, who expect the platform to be eventually scarcer than gold.

EIP-1559 is scheduled to go live this week and I still see a lot of wrong takes on its impact. Remember:

– It doesn't make $ETH deflationary by default.
– It doesn't reduce $ETH supply by 90%, referred as "triple halving".
– It's still very bullish for $ETH.

Why? 🧵👇

— korpi (@korpi87) August 2, 2021

At the time of writing, there is a bearish engulfing bar in the daily chart.

It completes a three-bar bear reversal pattern. This is a few days after ETH/USD buyers pushed above the primary resistance and June 2021 highs at $2.4k.

The correction was expected–and is normal–coming after gains of the last week of July.

Of note, Aug 3 bar is light in participation, as trading volumes show.

At the same time, the general sentiment on ETH remains bullish ahead of London.

Additionally, factoring in ETH/USD closing above June 2021 highs at $2.4k, buyers have the upper hand from an Effort-versus-Results point-of-view.

Accordingly, the retrace could offer buying opportunities for ambitious bulls, angling at $2.9k in the medium term.

ETH/USD to Power above $2.9k in the “Next Couple of Weeks”

On Twitter, traders are excited, expecting more gains in the days ahead.

One observes that ETH/USD formed a triple bottom at around the 30-day moving average.

He explains that the zone at around $1.7k formed a demand area that is the anchor sustaining the upcoming lift-off.

He predicts ETH/USD prices to power above $2.9k in the next couple of weeks.

$ETH #Ethereum

Weekly chart shows price stabilizing from the 30 MA. Triple bottom formed in the demand zone at $1700.

The set up is there for $ETH to power through and test $2900 within the next couple weeks. pic.twitter.com/jV1sjPZuEF

— TheTradingDome (@TheTradingDome) August 1, 2021

Ethereum OBV rising, Bulls Run Not Over

It is the view of yet another trader on Trading View who thinks Ethereum would likely hit $2.9k.

Aware that ETH/USD prices could correct lower, the close above $2.4k was a turning moment for bulls.

Critically, it precedes an important fundamental event.

Therefore, while prices might be correcting, there could be room for more upside, as Kovach OBV indicates.

If ETH/USD prices close above the immediate resistance line at $2.6k, he predicts, bulls would easily see the coin expand back to $2.9k and $3k.

ETH/USD Prices in a Bull Flag—Opportunity to Buy

This is the observation by OptimoomFX on Trading View.

From the candlestick arrangement in the 2-HR chart, the analyst said Ethereum prices are in a bull flag.

In a trend continuation pattern and bulls, whose tails are now up, yearning for action, every low could be a loading opportunity.

Immediate targets stand above $2.8k.

Charts courtesy of Trading View

Disclosure: Opinion is that of the author. Do your own research.