Ethereum
On-chain data indicates bearish trends for ETH price in August
Ethereum (ETH) price closed last week on a bearish note after a notable rally fueled by the recent approval of Ether spot ETFs. The large-cap altcoin, with a fully diluted valuation of around $407 billion and an average daily trading volume of around $11.1 billion, has already established a solid support range between $2,928 and $2,831 over the past five months.
Demand for Ethereum Drops
Ongoing cash outflows from US-based Ether spot ETFs have weighed heavily on Ethereum’s bullish sentiment. At the time of writing, US-based Ether spot ETFs have recorded a net cash inflow of approximately $341 million.
Despite notable inflows into other spot Ether ETF issuers, Grayscale’s ETHE has over $7 billion in net assets under management, which will likely be exited in the coming months.
Therefore, on-chain data shows that some large entities holding Ether have started to abandon Altcoin to preserve their profits and capital.
For example, a giant whale recently deposited huge amounts of Ether into various centralized exchanges, signaling a possible capitulation.
Ethereum Price Prediction
With July ending on a bullish note, the cryptocurrency sector is likely to be trapped in a bearish outlook in August, as historical data shows. Moreover, the US Fed is not expected to initiate interest rate cuts on August 31, similar to China, the EU, or the Bank of Canada.
According to a popular crypto analyst aka CrediBULL Crypto, Ethereum price is likely to drop towards the support level around $2,814 I. In the coming weeks. The crypto analyst expects a similar drop in Bitcoin towards the support level around $60,000.