#Ethereum# Last week, it failed to break through the selling wall formed around $3,900 once again and retraced to its support around $3,400. As we enter August, the reaction buying from this price region has turned the direction of the cryptocurrency back upwards; however, the recovery seems to be continuing more cautiously. The movement on the institutional side was striking during the last recovery attempt. According to Santiment data, there has been an increase in the number of wallets holding $10,000 or more in ETH recently. The demand for Ethereum-based investment products continues to remain strong. Despite institutional support, Ethereum is still struggling to break the resistance area around $3,900. This indicates that market sentiment is more influenced by external dynamics that suppress risk perception, such as the economic outlook in the US and trade wars. From a technical perspective, we can say that ETH has roughly entered a consolidation phase in the range of $3,450-$3,980. In this price range, $3,700 acts as a minor resistance, and breaking this level with daily closes could allow for a re-test of the main resistance. However, the current outlook shows that there has not yet been enough buying volume to break this resistance. Still, the stochastic RSI on the daily chart is generating a signal that the main resistance could be tested above $3,700. For the trend to continue upwards, a weekly close around the $4,000 band is still being awaited.

On the other hand, the inability to break the $3,700 resistance could lead to increased selling pressure. In a possible pullback, the $3,450-$3,500 range continues to maintain its significance. A break of this price zone would likely ensure the correction becomes more pronounced. It can be said that the stochastic RSI, which remains sideways in the overbought zone on the weekly outlook, will continue its downward trend below $3,450. This also indicates that the correction could deepen according to historical data. In such a scenario, $3,000 emerges as the first significant support level, and a drop towards the $2,500 band can be seen as the pullback continues.
As a result, the short and medium-term technical outlook for Ethereum depends on how long institutional appetite lasts. Additionally, the risk perception shaped by macroeconomic developments continues to be the most important factor determining the exit direction of ETH from the $3,450-$3,980 range.