USA: Mild $125 million fine against Ripple triggered market recovery
Ethereum, like the broader crypto market, started the week on a downward trend. On Monday, August 5, a sharp market crash occurred that sent ETH to a multi-month low of $2,110.
However, a significant turning point was the US court’s decision on August 7 to impose a relatively lenient fine of $125 million on Ripple. The resolution of the lengthy legal dispute between Ripple and the SEC had been a major shock to the market.
The perceived legal clarity from US regulators instilled new confidence among investors and sparked a rapid recovery in Ethereum price, which quickly rose back to $2,600. Although ETH initially faced resistance at this level, the overall market sentiment changed to a more optimistic forecast.
Brazil: Approval of Solana ETFs should increase crypto and ETH adoption
On August 8, Ethereum received an additional boost when Brazil approved the first Solana ETFs. This move, which signals growing institutional interest in the cryptocurrency market, is expected to deepen cryptocurrency adoption in Brazil, one of Latin America’s largest economies.
As Brazil’s financial markets increasingly embrace blockchain technology, the impact on Ethereum’s price has been clear. The chart above shows ETH being pushed above the $2,600 mark for the first time since Monday’s market crash.
The chart shows that ETH recently experienced a significant decline of about 60.58%, as indicated by the large orange rectangular box. This move spanned 7 days and saw the price fall from around $3,000 to a low of $2,619.55.
However, the green rectangular box below shows a partial recovery of about 26.93% over 4 days, suggesting that there may be some buying interest in the market.
Russia legalizes crypto mining: ETH rises to $2,700
The main catalyst came on August 8, when Russian President Vladimir Putin signed the law legalizing cryptocurrency mining. This move is part of Russia’s broader strategy to reduce dependence on the US dollar in international trade and align with the ambitions of the BRICS bloc.
Although the law is not scheduled to come into force until November 2024, the perceived regulatory framework for crypto mining has boosted investor confidence across all markets.
The announcement had an immediate impact on the price of Ethereum, pushing it to a high of $2,707, up 26.93% from its low on August 5. This increase reflects both the strategic importance of the Russian 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 sustained rise in the ETH price.
On August 9, Ethereum’s funding rate moved into positive territory around 0.00031%, indicating a change in trader sentiment. After several days of negative funding rates that suggested short positions were paying off long positions, the recent spike above zero suggests longs are now in control.
This positive change in the funding rate shows that traders are responding positively to the latest developments, including the legalization of crypto mining in Russia.
The increase in the funding rate often correlates with bullish price action because it reflects a growing willingness of traders to pay a premium for long positions.
If this trend continues, it could provide Ethereum with further upside, reinforcing recent price gains and potentially pushing 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 future.
ETH price prediction: $3,000 breakout in focus?
The current technical setup for Ethereum (ETH) suggests a possible recovery as the market recovers from a recent sharp decline. Despite the ongoing recovery, ETH is facing immediate resistance at the $2,764.26 mark, which coincides with the upper boundary of the recovery box and coincides with the 26-period Ichimoku baseline (red line).
A successful breakout of this level could take the price target to the next resistance at $2,844.25 marked by the blue linear regression channel and possibly move towards the psychological $3,000 level, where the Ichimoku cloud (red shaded area) could act as a barrier.
On the downside, the key support is at the recent low of $2,619.55, followed by the lower boundary of the linear regression channel near $2,500. A failure to sustain above these levels could trigger another bearish wave and push ETH towards the $2,400 zone.
While the short-term outlook appears cautiously optimistic with the $3,000 target in focus, ETH needs to overcome several resistance levels to confirm a sustained uptrend. Failure to break the $2,764.26 mark could see the bears retain control.
