Ethereum broke down from its multi-week sideways range on 10 August, sliding below $1,894 after repeated failed attempts to clear resistance near $1,948. Easing fears over the Strait of Hormuz had lifted sentiment, but the breakout points to renewed selling pressure. Cooling leverage and a jump in active addresses keep the setup from turning decisively bearish.
Ethereum broke down from the contracting triangle it had traded in for weeks when a large red candle pushed the price below both the triangle's lower boundary and the $1,894 lower edge of its trading profile on 10 August. The move followed a peak of around $1,975 in late July, after which ETH had been consolidating sideways rather than extending the rally.
Selling Pressure Targets Support Below $1,894
Continued selling could push the price toward the green support level at $1,854, the zone between it and the lower profile boundary that ETH has now entered. That support level is the next line buyers would need to defend. Should the trend reverse instead, traders would watch the point of control at $1,915 and the upper profile boundary at $1,925, with the red resistance level at $1,942 sitting just above those marks. The breakdown also came with a rise in trading volume, pointing to stronger selling activity at the moment of the break.
Momentum Indicators Show a Stall, Not a Reversal
Following the decline, the RSI and moving-average indicator read 32, 52 and 53, with the oscillator moving out of the neutral zone while the moving averages stay some distance from crossing below their lower boundary. Separately, ETH has repeatedly failed to clear the $1,936–$1,948 resistance zone, and its RSI has been hovering near 50 and sitting below its own moving average, a sign that buying momentum stalled rather than reversed outright.
Cooling Leverage and Rising Network Activity
Away from price action, funding rates have dropped by more than 30%. The decline points to easing leverage built up in derivatives markets. Over the same stretch, active addresses have surged to around 870,000 over the past two days, well above the recent range, a signal that network participation is picking up even as price momentum fades.
Geopolitical developments around the Strait of Hormuz remain one of the key factors shaping crypto market sentiment, after Iran reported progress on 8 August in talks with Oman over a possible new route through the strait, though any agreement still depends on additional conditions.
Sources: ActionForex, Coinpedia Fintech News
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