Ethereum (ETH) climbed over 5% on Aug. 12 to a multi-year high above $4,500, marking its highest price since December 2021.

The increase coincided with corporate treasury purchases, record inflows into U.S. spot exchange-traded funds (ETFs), and growing expectations that the Federal Reserve will lower interest rates at its September policy meeting.

The latest price move followed the release of U.S. Consumer Price Index data showing annual inflation above the central bank’s 2% target but broadly in line with forecasts.

The figures prompted market participants to increase bets that the Fed will implement its first rate cut since 2020, easing borrowing conditions across financial markets.

Corporate accumulation

Bitmine Immersion Technologies disclosed plans to raise as much as $20 billion for additional Ethereum acquisitions. The company already holds about $5 billion in ETH, positioning it among the largest known corporate holders of the second-largest crypto.

Its heavy accumulation follows a broader trend of companies adopting digital assets in their treasury strategies, a movement that has gained pace as institutional access to crypto markets expands.

U.S.-listed spot Ethereum ETFs registered $1 billion in net inflows on Aug. 11, the highest daily total since their launch earlier this year. The inflows also surpassed those of spot Bitcoin ETFs for the second time in August.

Over the past month, Ethereum has strengthened against Bitcoin, with the ETH/BTC ratio rising nearly 50% to above 0.37, though it remains down 15% compared to a year ago.

Regulatory shifts and network activity

Ethereum’s share of the crypto market has been increasing in recent weeks after an extended period of underperformance relative to Bitcoin.

The network hosts a large share of activity in asset tokenization, DeFi, and blockchain-based settlement systems that mirror traditional market infrastructure. These uses have been supported by recent software upgrades aimed at improving scalability and reducing transaction costs.

Regulatory developments have also shaped the current environment. In the US, the passage of the GENIUS Act has provided greater clarity for certain digital asset activities, which has been cited as a factor in renewed institutional participation.

In parallel, other digital asset treasuries, including Sharplink, have increased ETH holdings, further adding to market demand. The combination of corporate accumulation, strong ETF inflows, and the potential for looser monetary policy has coincided with ETH’s highest price in nearly five years.

While previous rallies have often been followed by periods of heightened volatility, the current market environment reflects multiple overlapping drivers that have concentrated buying activity in the asset over recent weeks.

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Banking titan Goldman Sachs believes the US dollar’s poor performance over the last few months is just the beginning of a downtrend that will likely last for years.

In a new podcast, Goldman Sachs chief economist and head of global investment research Jan Hatzius calls the US dollar the “dog that didn’t bark.”

Hatzius says the US economy has stabilized since April, when the stock market plunged amid Trump’s trade war. However, he points out that the dollar has continued to weaken, depreciating even as the economy rebounds.

The economist says the dollar’s bearish price action suggests it’s being driven by long-term structural factors rather than the near-term economic outlook.

“The dollar is still very highly valued on a broad trade-weighted basis, and that historically sets up for depreciation in the coming years. 

The US still runs a very large current account deficit that needs to be financed by equal-sized capital inflows.

Then there are some of these more tail risk concerns around things like Fed independence that probably also have an impact on how foreign investors perceive investments in the US…

This is not about a fire sale. It’s about making it a little bit more difficult to obtain the capital inflows that are needed to cover the current account deficit.”

In April of this year, Hatzius said that the US had a current account deficit of $1.1 trillion, which needed to be financed by foreign investments in US assets such as Treasuries and equities.

The current account deficit exists because the US spends more than it earns from the global economy. By consuming more than it produces, the country relies on foreign investment to bridge the gap. But when foreign funding slows, pressure builds on the dollar as capital flows outward, increasing the global supply of USD and contributing to its devaluation.

At time of writing, the US dollar index (DXY), which tracks the performance of the dollar against a basket of major currencies, is down about 10% year-to-date.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Popular macroeconomics expert Lyn Alden believes that the current Bitcoin (BTC) correction is similar to the one witnessed in March 2024 based on one key on-chain metric.

In a new interview on The Your Life! Your Terms! YouTube channel, Alden says she’s keeping a close watch on Bitcoin’s market value to realized value (MVRV) metric, an on-chain indicator that helps assess whether BTC is overvalued or undervalued by comparing its market cap (market value) to the average price at which all coins were last moved (realized value).

The macro guru explains that during the initial stages of a bull market, Bitcoin’s market cap tends to soar, while its average cost basis lags as early investors hold on to their coins in anticipation of more rallies, resulting in a higher MVRV value.

Alden says that when the MVRV soars to extreme levels, it drives more long-term investors to unload their holdings, which can signal the start of a multi-year bear market.

For now, the macro expert says the metric is still within its usual bull market range, leading her to believe that BTC can still soar to greater heights.

“When you see more and more coins at those higher price levels, it helps lower that ratio because basically the average cost basis is catching up to some extent with that wild explosion in market cap.

So what I generally point out is that we’ve not really seen extremes yet this year. Back in March 2024, when we broke out to new all-time highs for the first time in a couple of years, Bitcoin hit $73,000. That metric got a little bit euphoric, but nothing like a multi-year top historically has been. And so we saw a seven-month consolidation, but nothing really worse than that. 

Similarly, when Bitcoin hit $108,000 more recently, that metric got a little bit overdone, but again, it wasn’t those multi-year dislocations that we normally see. 

For me, I’m more on the lookout for probabilities of breaking out versus breaking down. And so my view is that there’s still a higher probability of breaking up and to say that, I don’t think we’re set for a multi-year bear market until we probably reach higher prices.”

At time of writing, Bitcoin is trading for $81,357.

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Dogecoin (DOGE) closed last week on a bullish note after testing critical technical levels that could define its next directional move. The weekly chart on Binance (DOGE/USDT) reveals that DOGE is currently trading just above the significant 0.786 Fibonacci retracement level at $0.167. This retracement is drawn from the all-time low at $0.0805 to the peak of $0.4844.

Dogecoin Reversal Confirmed?

A notable technical development is the interaction with a long-standing descending trendline, extending from the May 2021 all-time high. DOGE recently retested this trendline as support after breaking above it in November 2024.

Last week’s candle printed a Hammer-like formation, characterized by a small real body near the top of the range and a significantly longer lower shadow. While the candle also displays a modest upper wick, the dominance of the lower shadow signals that buyers absorbed aggressive sell pressure below the trendline and pushed the price back above the 0.786 Fibonacci level – a strong bullish signal.

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However, this week could be as important as last week. A weekly close above $0.167 seems essential to confirm the momentum. Otherwise, another test of the multi-year trendline could become a make-or-break moment for the Dogecoin price.

Notably, momentum indicators remain neutral to bearish. The weekly Relative Strength Index (RSI) closed around 39, reflecting subdued buying strength and highlighting that DOGE is still operating below the neutral 50 mark.

The Exponential Moving Averages (EMAs) are providing layered resistance above the current price.
The 100-week EMA lies at $0.17284, positioned just above DOGE’s current range, while the 50-week EMA is located at $0.21427. The 20-week EMA, the more immediate resistance during previous rallies, now sits at $0.24805. Support is reinforced at the 200-week EMA around $0.13621, a level that would likely serve as a last line of defense should DOGE crash below the multi-year trendline.

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Price action in recent weeks also shows DOGE breaking down from a bearish flag or channel formation, with the breakdown accelerating toward the confluence of the 0.786 Fibonacci level and the descending trendline retest. Despite this, the market responded with strong buying interest in the highlighted red support zone.

On-chain data further contextualizes the recent price action. Analytics firm Santiment reported via X today that Dogecoin, like most meme coins, has been heavily impacted during the ongoing two-month market-wide retracement. However, Santiment pointed out a bullish divergence on the network side.

The firm states: “Dogecoin, like most meme coins, have been hammered during the 2-month crypto-wide retrace. However, we recommend keeping an eye on the rising level of wallets holding at least 1M $DOGE, which has recovered during the price dump. Active addresses are also at 4-month highs.”

Adding to this sentiment, crypto analyst Daan Crypto Trades commented via X: “DOGE similar to PEPE but has already retaken the Election level after sweeping it. I think these are key levels to keep watching on a lot of these alts. A sweep & retake signals some short term relief and these levels can offer a clean invalidation level afterwards.”

This aligns with the technical observation that DOGE’s recent price action may represent a sweep of liquidity below a key level, followed by a recovery above support — a typical short-term bullish reversal pattern in crypto markets.

Featured image created with DALL.E, chart from TradingView.com

Litecoin has recently experienced a strong bullish surge, rising more than 30% since last Friday. This impressive rally places Litecoin as one of the top performers of Altcoins during periods of market uncertainty. Analysts and investors are speculating about the potential for a massive breakout in the coming weeks as Litecoin continues to show relative strength compared to other cryptocurrencies.

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Top analyst Bigcheds shares a detailed technical analysis and reveals that Litecoin is approaching its daily range peak and is gearing up to test multi-year highs around the $145 mark I’ve done it. This critical resistance level is a critical zone for Litecoin in previous cycles, and above that, it could mark the beginning of a major upward trend.

Litecoin’s recent momentum has attracted attention from both retail and institutional investors who are closely watching the confirmed signs of breakouts. With the broader market still consolidated, Litecoin’s ability to outperform could set the stage for bullish continuance and raise prices to new heights.

Litecoin’s price action remains focused for traders as Crypto Market blocks the next move. Beyond the $145 level, it will solidify a bullish story and pave the way for further profits.

Litecoin prepares for a breakout

Litecoin has skyrocketed over 30% over the past week, showing impressive relative strength while the broader market continues to be indecisive. This remarkable performance has attracted the attention of analysts and investors, and hopes that some Litecoins will lead bullish rally that could break multi-year highs and push them to higher supply levels. I’m doing it. However, attention remains among market experts as current price actions can lead to fake breakouts.

Top analyst Bigcheds shared a technical analysis for X, revealing that Litecoin is approaching the peak of its daily range. According to him, the important level to see is around $145, a critical zone of resistance that has served as a barrier in the past. Bigcheds said that price momentum is promising, but he remains skeptical until Litecoin can clear this level decisively and hold it as support.

The next few days will be important for Litecoin as altcoins across the market find support and they are cheating after Bitcoin regaining the $10,000 mark. If Litecoin can maintain its momentum and surpass the $145 level, it can solidify its position as one of the leading Altcoins in the current market cycle. Conversely, failing to clear this key level can lead to retracement and test for drops in the support zone.

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As the market has been watching closely, Litecoin’s ability to break past resistance beyond recent profits could determine that direction in the coming weeks. It is still unclear whether the move marks the start of a bullish rally or if there will be no other counterfeiting, but its price action undoubtedly sets the stage for a significant market move.

LTC Testing Critical Supply Levels

Litecoin (LTC) is trading at $127 after experiencing a strong bullish surge, rising more than 23% in less than two days. The recent price action was impressive as LTC recovered the range and was pushed past the important $120 mark. The move changed market sentiment and put a lot of pressure on the bears as prices approached $140 and $145 in the next key resistance zone.

The $140 and $145 levels represent important supply zones that historically served as barriers to even upward movement. Breakouts above these levels not only show a continuing bullish trend, but also set the stage for Litecoin to test its multi-year high at $147. Analysts believe that collecting and retaining this level above could lead to large gatherings and driving the LTC into unknown territory.

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However, the upcoming days are important for Litecoin’s price trajectory. The Bulls need to maintain momentum and adhere to current levels to maintain this upward movement. If the LTC succeeds in exceeding $147, it could attract more buyers and further increase profits. Conversely, failure to clear these resistance levels can lead to consolidation or minor setbacks before another attempt at breakout. As you approach the critical stage, all your eyes are on Litecoin.

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