The structure of Ethereum remains one of the strongest on the market, despite the recent price correction that has shaken some market participants. This is due to a strong cluster of long-term support levels in the form of weekly moving averages. Currently a strong set of 10 moving averages serves as a safety net below the current price levels, effectively protecting Ethereum.
Ethereum is trading around $3,460 as of Aug. 3 and has recovered from the 26 EMA on the daily chart, which is a bullish indication in and of itself. The multiple weekly moving averages, however, form a layered defense beneath that level. Rarely is this type of multi-level support structure observed simultaneously.
These averages often act as clusters of purchasing power on the market; they reflect institutional interest, long-term investor positioning and sometimes years of historical price behavior. They frequently align with previous consolidation zones and high-volume nodes. Above all, during significant corrections, ETH has historically recovered from levels such as the 200-week SMA.
Price would need to break through at least five weekly support levels before we could discuss significant structural damage even if it were to break below the 26 EMA on the daily chart, which is currently around $3,400. The volume is still healthy and the RSI has already cooled off of its overbought state.
This implies that Ethereum may be about to enter a phase of sideways to mildly bullish consolidation prior to any further decline, if one occurs at all. Ethereum stands atop a multi-tiered platform of moving averages that was constructed over a year. There is a lot of ground below that is likely to catch any possible fall unless macroeconomic conditions abruptly collapse.
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