Ethereum Price Prediction for August 2022
Ethereum price had a strong performance in July this year as investors remained enthusiastic about the upcoming merge. It rose to a high of $1,775, which was substantially higher than the year-to-date low of $880. As a result, its market cap jumped to over $200 billion.
ETH July review
Ethereum price staged a major recovery in July this year as investors started being optimistic about the merge event that is set to happen in September.
During the month, the developers continued testing the upgrade before the merge happens. For starters, this merge will combine the existing proof-of-work (PoW) mainnet with the Beacon Chain. The Beacon Chain is a prof-of-stake network that will be the future of the network.
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The merge will lead to better fundamentals for Ethereum. For example, it is estimated that the new version will be able to process over 1,000 transactions per second (tps) up from the current less than 20. This speed will increase when the developers introduce the concept of sharding in the platform,
At the same time, the new version will have low transaction costs. Presently, a single Ethereum transaction costs over $10. With the new version, these transactions will cost much less. Most importantly, the carbon footprint will be reduced while users and ETH holders will earn staking rewards.
ETH price also bounced back because of the strong performance of the DeFi industry. The total value locked (TVL) in DeFi jumped from the year-to-date low of $70 billion to over $90 billion. Some of the top performers were Maker, Compound, Lido, and InstaDapp among others,
Therefore, investors believe that inflows in DeFi will continue rising in the coming months. Besides, most DeFi platforms did well during the recent collapse of key platforms like Voyager Digital and Celsius.
Ethereum price forecast
The daily chart shows that the ETH price has been in a strong bullish trend in the past few weeks. It managed to cross the important resistance levels at $1,283, which was the highest points in June and July 8th.
The coin has managed to move above the key psychological level of $1,500 while the Relative Strength Index (RSI) and MACD have all pointed upwards. The 25-day and 50-day moving averages have made a bullish crossover.
Therefore, the coin will likely continue rising as bulls target the key important resistance level at $2,172. This price is about 30% above the current level. A move below the support at $1,283 will invalidate the bullish view.