USA: Lenient $125M Fine on Ripple Sparked Market Recovery
Ethereum, like the broader crypto market, started the week on a downtrend, with a sharp market crash on Monday, August 5, pulling ETH to a multi-month low of $2,110.
However, on August 7, the U.S. court’s decision to impose a relatively lenient $125 million fine on Ripple marked a significant turning point. The resolution of Ripple’s prolonged legal battle with the SEC had been a major overhang for the market.
The perceived legal clarity from US regulators instilled renewed confidence in investors, triggering a swift recovery in Ethereum’s price, which quickly rallied back towards $2,600. Although ETH initially faced resistance at this level, overall market sentiment shifted to a more optimistic outlook.
Brazil: Solana ETFs Approval Expected to Deepen Crypto and ETH Adoption
On August 8, Ethereum received an additional boost when Brazil approved the first Solana ETFs. This move, signaling growing institutional interest in the cryptocurrency market, is expected to deepen crypto adoption in Brazil, one of Latin America’s largest economies.
Brazil’s financial markets further embraces blockchain technology, the impact on Ethereum’s price was evident. The chart above shows how it propelled ETH above the $2,600 level for the first time since market crash on Monday.
The chart indicates that ETH recently experienced a significant drop of approximately 60.58%, as marked by the large orange rectangular box. This move spanned over 7 days, causing the price to plummet from around $3,000 to a low of $2,619.55.
However, the subsequent green rectangular box shows a partial recovery of about 26.93% over 4 days, suggesting that the market might be finding some buying interest.
Russia Legalizes Crypto Mining: Sending ETH Towards $2,700
The most significant catalyst came on August 8, when Russian President Vladimir Putin signed into law the legalization of cryptocurrency mining. This move is part of Russia’s broader strategy to reduce reliance on the U.S. dollar in international trade and align with the BRICS bloc’s ambitions.
Although the legislation is set to take effect in November 2024, the perceived regulatory framework on crypto mining has lifted investor confidence across the markets.
The announcement had an immediate impact on Ethereum’s price, driving it to a peak of $2,707, marking a 26.93% increase from the August 5 low. This surge reflects both the strategic importance of Russia’s decision and the global market’s response to a more regulated and secure environment for cryptocurrency operations.
However, looking ahead, we see that speculative traders are now betting on a prolonged ETH price rally.
On August 9, Ethereum’s funding rate shifted into positive territortories around 0.00031%, signaling a change in trader sentiment. After several days of negative funding rates, which indicated that short positions were paying long positions, the recent move above zero suggests that long positions are now in control.
This positive change in the funding rate indicates that traders are reacting favorably to the latest developments, including Russia’s legalization of crypto mining.
The increase in the funding rate often correlates with bullish price action, as it reflects a growing willingness among traders to pay a premium for long positions.
If this trend continues, it could provide further upward momentum for Ethereum, reinforcing the recent price gains and potentially driving ETH closer to the $3,000 mark. This renewed optimism among traders, combined with positive news from global markets, could be a strong indicator that Ethereum is poised for further growth in the near term.
ETH Price Forecast: $3,000 Breakout in Focus?
The current technical setup for Ethereum (ETH) suggests a potential rebound as the market recovers from a recent steep decline. Despite the ongoing recovery, ETH faces immediate resistance at the $2,764.26 level, which aligns with the upper boundary of the recovery box and coincides with the 26-period Ichimoku baseline (red line).
A successful breach of this level could see the price target the next resistance at $2,844.25, marked by the blue Linear Regression channel, and potentially move toward the psychological $3,000 mark, where the Ichimoku cloud (red-shaded area) could act as a barrier.
On the downside, key support lies at the recent low of $2,619.55, followed by the lower boundary of the Linear Regression channel around $2,500. A failure to hold above these levels might trigger another bearish wave, pushing ETH towards the $2,400 zone.
While the near-term outlook appears cautiously bullish, with the $3,000 target in focus, ETH must overcome multiple resistance levels to confirm a sustained upward trajectory. A failure to break above $2,764.26 could keep the bears in control.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
