Should you zoom out ETH’s chart, you’ll discover that its efficiency in July is analogous with its efficiency in March. Might this efficiency provide some insights into how ETH will carry out in August?
ETH’s newest rally kicked off in mid-July and managed to push the crypto up by as a lot as 74%. Extra importantly, its worth gave the impression to be caught in a low-volatility vary after its sharp crash from April to June.
Equally, ETH rallied by roughly 42% from round mid-March, after being caught in a low-volume vary. It was preceded by a pointy crash between November 2021 and January 2022.
![](https://statics.ambcrypto.com/wp-content/uploads/2022/07/ETHUSDT_2022-07-31_18-16-47.png)
Supply: TradingView
If ETH follows the same sample because it did in March, then August ought to ship a bearish efficiency. Though that is completely doable, many of the dynamics at the moment driving its worth motion are totally different now, in comparison with what was the case in March.
The 2 sides of the coin
One of many fundamental variations is that ETH has virtually doubled its drop from the ATH. Ethereum plans to roll out the ultimate testnet known as Goerli in direction of the top of the primary week of August. The mainnet Merge is predicted to happen in September. This implies August is a crucial month for the community and the altcoin.
Cryptocurrencies typically rally just a few weeks earlier than their native networks undergo a serious improve. The Merge is the largest community improve in Ethereum’s historical past. By the identical premise, we will count on ETH to draw quite a lot of consumers within the weeks forward of the Merge. Maybe, this may even encourage buyers to carry on to their ETH, fairly than promoting earlier than the Merge.
The aforementioned expectations are according to ETH flows, particularly over the previous few days. Regardless of its rally, nonetheless, the variety of lively ETH addresses and receiving addresses fell barely within the final 4 days. That is seemingly as a result of buyers anticipate some promote stress close to the present month-to-month prime.
![](https://statics.ambcrypto.com/wp-content/uploads/2022/07/glassnode-studio_eth-receiving-addresses-eth-active-addresses-eth-addresses-with-balance-1k-eth-new-addresses.png)
Supply: Glassnode
New addresses and addresses holding greater than 1,000 ETH additionally dropped, however they’ve already began recovering.
This confirms that the demand for ETH is robust, particularly now that the community is within the final stretch earlier than the Merge date.
![](https://statics.ambcrypto.com/wp-content/uploads/2022/07/glassnode-studio_eth-receiving-addresses-eth-active-addresses-eth-addresses-with-balance-1k-eth-new-addresses-1.png)
Supply: Glassnode
Conclusion
The Merge’s affect on ETH’s worth motion can’t be understated. Nonetheless, buyers ought to be aware that ETH remains to be closely pegged to the remainder of the market. Ergo, a number of pricing elements will affect its efficiency. Nonetheless, a serious drop can be seen as a chance for buyers to scoop up ETH at a reduction. Such a state of affairs means ETH would seemingly keep a wholesome flooring worth.