Ethereum Price Prediction: Break Above $1,950 Could Unleash Strong Rally for ETH

Ethereum (ETH) is nearing a key resistance today at $1,950 that, if broken, could push the top altcoin to levels not seen in months.

The crypto market seems to be reacting positively to news that the U.S. Senate is scheduling a hearing for the Clarity Act for September this year, right after the summer recess ends.

Even though Democrats have been opposing the law as is, Republican leaders seem committed to making it the first thing on the agenda for lawmakers.

Senate Majority Leader John Thune said that he expects the chamber to hold its first vote shortly.

“I worked with sponsors of the bill. Senator Lummis was great, and we’re getting that queued up first thing when we come back.”

The Clarity Act paves the way for the launch of more crypto-focused products and could drive higher liquidity to the market, as Americans will progressively be able to access the market through regulated offerings.

Republicans will still need to get Democrats onboard, but the fact that the Senate’s leader is rushing to push the law to the floor could mean that he is making progress on getting the support he needs to get it passed.

Seasonal Trends Favor a Bearish Outlook in August for ETH

In the meantime, a hesitant market has kept Ethereum trading in a tight range between $1,840 and $1,950, following a promising bullish breakout above the $1,800 level.

August has typically been a bearish month for the top altcoin. According to data from CoinGlass, ETH has booked a loss in 9 out of the past 13 years. The magnitude of these losses ranged between 2% and 35%.

Meanwhile, the Coldcard hack had a surprisingly limited impact on investors’ appetite for cryptocurrencies, even though the amount of losses caused by a technical weakness in this cold wallet has increased to $250 million.

Noise aside, Ethereum ETFs have booked strong net inflows so far this week, nearing the $200 million mark, indicating that investors are positioning for a bullish outlook.

Investors and traders seem willing to jump on board, but the crypto market seems to be missing a strong positive catalyst to put an end to this bearish cycle.

The Clarity Act could be that, and a break above $1,950 could indicate that traders are positioning for a scenario in which the approval of this bill catapults ETH.

Ethereum Needs to Break Above $1,950 to Get Moving

Heading to the daily chart, we can see that Ethereum has formed a flag pattern following a strong uptrend that led to a break above the $1,800 level.

This is a continuation setup that tends to indicate that market participants have taken a pause to either take profits or open new positions ahead of the next move.

When the price breaks out of this pattern, it usually means that the asset is ready to get moving, which is why we see a move above $1,950 as an early indication that ETH could start to move higher in the next few days.

The next target for the token would be the $2,150 area, which is where the 200-day exponential moving average (EMA) currently sits, followed by a retest of the $2,400 resistance if the price manages to get past that technical indicator.