Ether (ETH) retested $2,111 on August 5 for the first time since January 3, briefly giving up 98% of its 2024 year-to-date gains. The ETH/BTC chart also shows weakness against Bitcoin (BTC), with the pair hitting a 1,211-day low.
Meanwhile, Ethereum ETF inflows saw a modest net inflow of $2.9 million on August 8, after seeing positive inflows of over $150 million immediately following Monday’s market crash. Total inflows remain negative at $390 million at the time of publication.
Ethereum Rise as Public ‘Major Interest’ After Crash
Ethereum has recovered 27% since hitting a low of $2,111 on Monday, amid a broader market recovery.
Bitcoin has seen a strong rally of 12% in the last 24 hours, and Ether has followed suit. Both assets currently share a correlation index of 0.82 over the 90-day period, suggesting that BTC and ETH are effectively moving in tandem.
Meanwhile, analytics platform Santiment highlighted that the crowd was mainly focused on Bitcoin and Ethereum after Monday’s sharp decline. Ether appeared to be a potential buying opportunity, and ETH addresses are a good example of this sentiment, as explained in the next section.
Ethereum Address Adds 757K ETH After Crash
According to on-chain data aggregators, ETH accumulation addresses with balances between 10-10K ETH and 10K-100K ETH have been gradually increasing their allocations since July.
As you can see on the chart, large addresses have absorbed a significant amount of ETH sell-off since Monday’s low. Addresses with balances between 10 and 10K have added 530K ETH, while addresses between 10K and 100K have added around 227K ETH since August 5th.
Markets Offer ‘Multiple Opportunities’ to Buy ETH – Analyst
Ether has made a quick rally from its recent lows, but the altcoin is expected to trade sideways in the coming weeks. According to popular crypto trader CrediBULL Crypto, Ethereum is likely to witness “one more minor downside low,” which would see it retest support at $2,111.
He cited Ethereum’s weakness against Bitcoin as the main reason, meaning that a minor correction in BTC could trigger a bigger drop in ETH.
Meanwhile, another popular crypto trader, CryptoPoseidonn, sees the above scenario as an opportunity. He commented on X.com:
“The market will hit a green bottom and provide multiple opportunities to buy $ETH over the next 2 months.”
However, despite the recovery, Ethereum’s daily chart is showing a downtrend. ETH price closed below the long-term bullish trendline (white rising line) that dates back to October 2023.
In addition, the price of Ether has fallen below the 100-day and 200-day exponential moving averages (EMAs), which are 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 any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.