Ethereum (ETH) 
$3,106, trading around $4,350, occupies a critical juncture in the market. Despite the slowdown in price movements following July’s sharp rise, a new move toward $5,000 is within the realm of possibility this month. The potential is supported by the technical structure and internal Blockchain indicators.
Technical Levels Remain Crucial
Bulls in Ethereum have established a significant support level by defending the 50-day exponential moving average at $4,164. Remaining above $4,000 increases the probability of retesting the $4,600 – $4,800 range. Surpassing this resistance zone could set the target at $5,000.
On the downside, support levels are positioned at $3,865 and $3,213. The Relative Strength Index (RSI) standing at 52 indicates that ETH is neither in the overbought nor oversold zone, suggesting that the price movement is on a balanced ground.
Decline in Investment Inflows and Market Participation
In recent weeks, Ethereum has succeeded in maintaining its value even as Bitcoin 
$90,533 struggled to recover. Holding its position firmly as the second largest cryptocurrency confirms its robust role in the market. The increase in transaction volumes and usage rates across the network has accompanied this trend, bringing positivity.
However, the decline in trading volumes and the slowdown in investment inflows continue to pose risks. The cautious approach of institutional and individual investors when bringing in new funds stands out as a primary factor limiting the likelihood of reaching $5,000. Nonetheless, the existing technical structure and market indicators remain key elements supporting Ethereum’s movement toward critical levels.
