3 Reasons Why Ethereum May Continue Its Rally in August

At least three technical and historical indicators suggest the rally could extend into August.

Ethereum Posted 18% Average Returns in August After a Bullish July

Based on the CoinGlass data shown, Ethereum has usually continued rising in August after posting a positive July.

Following a positive July, Ethereum’s August performance was:

• Positive in 3 of 4 cases: 75%
• Average return: +18.10%
• Median return: +22.05%

That is considerably stronger than ETH’s unconditional August record, which shows an average gain of 7.39% but a median loss of 4.54%. Ethereum’s history, therefore, leans bullish for August.

Ethereum Double Bottom Targets $2,180

Ether’s daily chart is showing a potential double-bottom reversal after forming two comparable lows near the $1,520 area in June and July.

ETH has since broken above the pattern’s neckline around $1,805, strengthening the bullish case. If the breakout holds, the measured move points toward the $2,100–$2,180 region, including the 200-day simple moving average near $2,111.

The setup would gain further credibility if ETH turns the $1,805 neckline into support during a pullback.

Conversely, a decisive close back below that level could weaken the breakout and expose the $1,700 area before a possible retest of the June–July lows.

ETH/BTC Cup-and-Handle Supports Further Dollar Gains

Ethereum may also outperform Bitcoin (BTC) in August, according to a potential cup-and-handle setup on the ETH/BTC daily chart.

The rounded cup formed between May and July, with its base near 0.0254 BTC and neckline around 0.0298–0.0300 BTC. A decisive daily close above 0.0300 BTC could confirm the breakout and send the pair toward 0.0345–0.0355 BTC, representing roughly 20% upside relative to Bitcoin.

That relative-strength breakout could reinforce ETH’s dollar rally, particularly if Bitcoin remains stable or rebounds. For example, a 20% rise in ETH/BTC alongside a flat BTC/USD rate would imply a similar gain in ETH/USD, potentially lifting Ether above $2,200.

However, a sharp Bitcoin decline could offset ETH’s relative outperformance and limit its dollar-denominated gains. The setup would weaken below 0.0285 BTC.