Ethereum USD

Ethereum is forming a classic bullish 'W' reversal pattern, with a breakout above $1,800 on high volume potentially unlocking a 30% rally toward $2,400. Cooling macroeconomic data has reduced rate hike expectations, fueling renewed risk appetite and capital rotation into high-beta assets like ETH.

Elliott Wave analysis on both the weekly and daily charts indicates a dominant downtrend, with price action expected to print further bearish zigzag patterns. A decisive break below key support levels could extend losses significantly, with some targets pointing as low as $1,273.

Cooling non-farm payrolls data has dampened expectations for further Fed rate hikes, signaling a more accommodative macro environment. This shift is driving capital back into risk assets, with Ethereum outperforming Bitcoin by over 12% in a single week as investor sentiment improves.

A Fed leaning toward tightening is seen as directly detrimental to crypto market inflows. Rising rate hike odds reduce liquidity and risk appetite, making it harder for speculative assets like ETH to attract sustained institutional and retail capital.

U.S. spot Ethereum ETFs recorded over $190 million in net inflows during July, reflecting meaningful institutional appetite. Analysts project ETH could rally toward its Realized Price of $2,245 as on-chain metrics like the MVRV Pricing Band signal a recovery phase is underway.

Despite a positive July overall, U.S. spot Ethereum ETFs recently recorded $28 million in net outflows, indicating inconsistent institutional commitment. Analysts caution that a rally toward $2,200 may be followed by a steep correction to a final bottom zone between $1,260 and $890.