On Friday, during his speech at the Jackson Hole symposium, the Fed Chair stated that restrictive policy, the base outlook, and the shifting balance of risks could require adjustment of borrowing costs. Investors took this as a signal of a possible rate cut at the September meeting, leading to significant weakening of the U.S. dollar against alternative assets and pushing ETH to a new all-time high near 4955.00. However, profit-taking followed, triggering a broader crypto market correction, reinforced by the sell-off of a large holder who offloaded 24,000 BTC. As a result, ETH/USD declined to around 4375.00 (Murray level [6/8]), but stayed above last week’s lows, keeping the possibility of renewed price growth.
Long-term fundamentals remain positive for ETH. After the SEC ruled in late May that staking in Proof-of-Stake networks does not qualify as a securities transaction, institutional demand for the token increased. Large companies began accumulating ETH to use as treasury assets and for staking to earn passive income. Demand is exceeding supply, supporting the price and driving investments into Ethereum ETFs, which grew by $1.069 billion over the last three sessions.
Despite the current correction, the outlook for renewed upward movement in ETH/USD remains intact.
Support and Resistance Levels
The asset corrected lower after reaching all-time highs and is now near 4375.00 (Murray [6/8]) supported by the middle line of the Bollinger Bands. A break below this level could extend the decline toward 3750.00 (Murray [4/8]). Otherwise, growth may resume toward 5000.00 (Murray [8/8]) and 5625.00 (Murray [+1/8]).
Technical indicators confirm the preservation of the upward trend: Bollinger Bands are directed upward, MACD is decreasing but remains in positive territory, and Stochastic has turned down, indicating limited potential for further correction.
Resistance levels: 5000.00, 5625.00.
Support levels: 4375.00, 3750.00.
Trading Scenarios
Long positions may be opened from 4570.00 or on a reversal near 3750.00 with targets of 5000.00, 5625.00 and stop-losses at 4320.00 and 3400.00, respectively. Implementation period: 5–7 days.
Scenario
Timeframe: Weekly
Recommendation: BUY STOP
Entry Point: 4570.00
Take Profit: 5000.00, 5625.00
Stop Loss: 4320.00
Key Levels: 3750.00, 4375.00, 5000.00, 5625.00
Alternative Scenario
Recommendation: BUY LIMIT
Entry Point: 3750.00
Take Profit: 5000.00, 5625.00
Stop Loss: 3400.00
Key Levels: 3750.00, 4375.00, 5000.00, 5625.00