- Ethereum gained 54% in July but now shows bearish signals
- Daily chart indicates bearish MACD and RSI divergence
- ETH might fall to $3500 before a potential recovery
Ethereum (ETH) had an impressive run in July, soaring by over 54% and gaining momentum across the crypto market. However, recent technical signals on the daily chart now point to potential short-term weakness. Traders and analysts are beginning to question whether this rally has hit a temporary ceiling.
Bearish Indicators Emerge on ETH Chart
Two important signals are currently flashing red: the MACD (Moving Average Convergence Divergence) has turned bearish, and there’s a clear RSI (Relative Strength Index) divergence on the daily chart. This means that while prices were climbing, momentum was slowing down — a classic sign that the market might be due for a correction.
This divergence often hints that the asset is overbought and could soon retrace before continuing its trend. As a result, Ethereum may experience a pullback in August.
Potential Drop to $3500 and Rebound Outlook
Analysts suggest that Ethereum could decline toward the $3500 level in the coming weeks. This price zone may act as a support area, providing a solid base for a future bounce.
Despite the short-term bearish outlook, long-term sentiment remains cautiously optimistic. If Ethereum does correct to $3500 and finds support, it could resume its upward movement — especially with growing interest in ETH ETFs and broader crypto adoption.
Investors are advised to monitor these key support levels and stay updated with market indicators before making trading decisions.
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