Ethereum Price Analysis: Bulls Back With Vengeance. $3,000 By The Weekend?

Daily Ethereum ETH Price Forecast

Last Updated August 5th 2021
2 Min Read
  • Ethereum price crossed $2,700.
  • ETH had 14 bullish days out of the last 15.

The Ethereum price jumped from $2,500 to $2,700 today as the bulls pushed ETH up by $200. Previously, ETH fell from $2,325 to $1,775 between July 7 and July 20 and flipped the 20-day and 200-day SMAs from support to resistance. It also reversed the parabolic SAR from positive to negative. Following this drop, the buyers took full control of the market.

Ethereum Price Rushes Up

Before today’s surge, the Ethereum price dropped from $2,600 to $2,500 this Tuesday. This drop happened after a bullish jump between July 21 and August 2 during which ETH went from $1,775 to $2,600. During this climb, ETH managed to flip the 20-day, 50-day, and 200-day SMAs from resistance to support. Along with that both the MACD and Parabolic SAR were reversed from negative to positive. 

Image: ETH/USD daily

ETH/USD daily chart 080521

Looking at IntoTheBlock’s IOMAP, the Ethereum price faces immediate resistance at $2,800. Previously, at this level, almost 371,000 addresses had purchased 704,000 ETH tokens.

ETH/USD volume chart 080521

Nicholas Merten: Ethereum Is Set To Explode

Crypto analyst Nicholas Merten recently said that Ethereum is gearing up to explode into a new bull market phase. In a new strategy session, Merten took a look at Ethereum’s market dominance, which shows ETH’s market share relative to all other crypto assets. He noted that Ethereum’s market dominance is poised for a breakout as it threatens to take out a crucial resistance area.

“Even with a variety of other cryptocurrencies now that Etheruem has to compete with or outpace to maintain market share, it’s been generally holding up at a resistance range we saw back here between March and May of 2017, around the 19% to 20% range for market dominance.

And this showcases that this is a really critical metric we need to watch for…And that is a huge psychological level because once we broke through that range, we climbed all the way up here to 32% market dominance, an over 50% increase of previous ownership of market share.”

A rise in Ethreum’s market dominance indicates that the leading smart contract platform is gaining value faster than other crypto assets.

The analyst also said that Ethereum’s EIP-1559, the much-awaited upgrade that would burn a portion of the transaction fees, could help the bullish case for ETH by putting deflationary pressure on it.

According to Merten, Ethereum looks as ready as any crypto for a sizeable secondary bull market in the near future.

“I think Ethereum is a safe bet as we go into the bull market here. The continuation of altcoins, as we go into the secondary wave… We might very well have that secondary shoot-up like we had back here in the middle of 2017.”

Ethereum Price Is Expected To Reach These Levels

The Ethereum price is targeting to take down the $2,800 resistance level. A break above that will take ETH to $3,000.

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