Ethereum is trading at $1,707 as the sideways trading continues this Sunday. As written in yesterday’s NullTX Ethereum price analysis and prediction, ETHUSD continues to trade within the $1,600-$1,700 range as the market awaits next week to decide its next move.
Trading Volume Down, Bears Coming Out
With the trading volume down significantly this Sunday, the crypto bears are coming out as market momentum falters. Bitcoin’s 24-hour trading volume is at $15.5 billion, down 28%, while Ethereum’s volume of $10 billion shows a decline of 30% in the past day.
The sharp decrease in trading volume makes sense this today is Sunday, and most traders are taking the day off. Moreover, with the two-month-long sideways market and lack of any substantial bullish momentum, cryptocurrencies are losing the interest of retail and institutional investors.
Despite the decline in volume, the long-term potential for Bitcoin and Ethereum remains positive. Last week we saw Coinbase partner with BlackRock, opening up access to billions of funds to flow into Bitcoin, Ethereum, and other major crypto assets.
In addition, CME Group, one of the largest options trading platforms, is scheduled to release Bitcoin and Ether derivatives at the end of August, providing further exposure to crypto markets.
On the bearish side, last month revealed that Tesla sold most of its cryptocurrency in Q2 2022, signaling a change in the company’s position on digital assets and the likely outcome of the market this year.
In addition, Michael Saylor, one of Bitcoin’s most prominent proponents, stepped down as CEO after his venture into digital assets cost the company $1 billion in losses.
Ethereum Price Prediction for the Week of August 7th, 2022
Looking at the three-month Ethereum chart, we see that Ethereum’s trend has been bullish over the past two months. After dipping to a low of $900 from a peak of $2,390 in May, we’re likely to continue to see Ethereum slowly attempt to climb back to the $2,000 range.
With the market excited about Ethereum’s upcoming network merge in September, which will turn ETH’s blockchain from the archaic proof-of-work to a forward-looking eco-friendly proof-of-stake consensus model, Ethereum has a bright few months ahead.
It’s unlikely we will see ETH prices below $1,000 anytime soon, but with the strength of the bear market, we can’t rule out another significant correction. However, it’s worth noting that if Ethereum dips below $1,000, it will cause a sharp rebound as the buy volume will increase drastically at that range.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any service.
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