Optimistic closure of the week and month in Ethereum market.
August turned out to be another bright month both in Ethereum market and in the Defi space. ETH price increased by almost 30%, closing the body of the month candle above the critical range $370-400. If we pay attention to the volumes, it becomes clear that buyers needed more energy than the previous month to continue the trend. During July, ETH price increased by 50% with lower resource costs for growth. However, the rapid development of the DeFi market, which amounted to about 125% in August, keeps this coin in good shape by paying for gas.
In fact, during August, buyers exhausted all sellers’ forces above the range $370-400 and cleared the way to the final target $800.
In the previous analysis we predicted an alternative scenario that could be possible after ETH price will be fixed below $370. Although during the previous week, sellers managed to touch this mark twice. It was after a failed second attempt to break $370 that buyers started a confident attack and were able to test $488.84.
Ethereum prospects for the week.
Decently closed weekly and monthly candles and sellers weakness in the range $370-400 had a positive effect on investors. As a result, ETH price rose by 10% since the beginning of the month. Interestingly, the price growth began in the early morning. On the hourly timeframe we see that in 4 hours buyers caught sellers by surprise and without problems raised the price by 6%.
At the moment there is a struggle for the local price zone $460-466. Keeping it, buyers will make a new attempt to storm $500.
Ethereum is steadily increasing its dominance in the crypto market.
The dominance of Ethereum in the crypto market continues to grow and occupies 14.45% now:
For the last two months, ETH has been steadily gaining ground over BTC. BTC dominance has declined from 65% to 59% during the past two months. As long as the focus is on the DeFi projects and testing this ecosystem, the trend will continue. In addition, the tokenization of BTC on the Ethereum platform will continue to strengthen ETH in the cryptocurrency market.
$800 in September is a very real target.
Therefore, the basic scenario of the growth continuation with a local target $500 and a global target $800 remains valid. Let’s see whether Ethereum can cope as a platform with aggressive growth of the DeFi market. Especially since the competition for dethronement of Ethereum from the main DeFi space platform in the long run is constantly growing.
Charts courtesy of Trading View