Ethereum Price Prediction for August as ETF and Staking Inflows Rebound

Ethereum price remained in a narrow range in July, even as American investors started buying spot ETFs. ETH token was trading at $1,865 on Saturday, a few points below last month’s high of $1,975. This article provides a prediction of what to expect in August this year.

Ethereum ETF Gained Assets in July

American investors added assets in July as investors started rotating back to cryptocurrencies. Data compiled by SoSoValue shows that spot ETFs added over $365 million in assets last month. This was a major milestone as the funds shed $528 million in assets in June and $540 million in May.

Spot Ethereum ETFs have had cumulative inflows of over $11.2 billion since their launch last year. They now have $10.2 billion in assets, with BlackRock’s ETHA leading the charge at over $5.4 billion. Grayscale’s ETH and ETHE follow with $1.57 billion and $1.4 billion in assets under management (AUM).

The same trend happened in other cryptocurrencies. Spot Bitcoin ETFs added $172 million in inflows last month, while XRP funds added $27.29 million. Solana ETFs added $14.6 million.

One possible reason for this is that investors are likely selling assets that underperformed the market during the artificial intelligence (AI) boom, which pushed top stocks like Micron, SanDisk, and Seagate to all-time highs. In July, most of these stocks tumbled, pushing investors to rotate back to other assets.

In addition to Ethereum ETF inflows, Tom Lee’s BitMine Immersion continued buying these coins. BitMine bought over 87,000 coins in July, bringing its total holdings to 5.78 million, which are equivalent to over $10.7 billion. The company is slowly nearing its 6 million target.

Additionally, demand for Ethereum staking continued to rise last month. Its staking ratio rose to 34.23%, with the staking market cap jumping to over $77 billion. The total staked ETH has jumped to 41 million coins. This is a sign that investors anticipate that the token will rebound.

Key Ethereum Metrics Improved in July

Meanwhile, some key Ethereum metrics improved in July despite the broader crypto winter. For example, the total value locked (TVL) in its decentralized finance (DeFi) platform jumped to over $40.6 billion. It has risen from the June low of $36 billion.

Lido’s TVL jumped by 20% last month, while Aave, Binance Staked ETH, and Sky jumped by 16%, 16.2%, and 6.5%, respectively. EigenCloud’s TVL rose by 14.4% to $5 billion. However, Spark and Ethena’s TVL dropped by 35% and 20%, respectively.

More data shows that the number of Ethereum transactions continued soaring. It handled over 72 million transactions, the highest level since April this year. This is a sign that its utility continued growing last month.

Still, looking ahead, Ethereum faces some major challenges. For example, the amount of stablecoins in the network dropped sharply in July. Also, its total fees dropped to just $8.3 million during the month.

Ethereum Price Prediction for August: Technical Analysis

The daily timeframe chart shows that ETH price rebounded from the year-to-date low of $1,509 in June to a high of $1,975 in July. This rebound happened after it formed a double-bottom pattern.

It has moved above the important resistance level of $1,840, the double bottom’s neckline. It has now retested that level, forming a break-and-retest pattern, a common continuation sign.

The coin has moved slightly above the 25-day Exponential Moving Average (EMA). Therefore, while it’s too early to predict, the coin may bounce back in August, potentially to $2,000 and above. A drop below the key support level of $1,700 will invalidate the bullish outlook.