Ethereum price traded near $1,868 on Aug. 5 as it compressed below a descending trendline, while debate over EIP-8361 added a new variable to the market outlook.
Summary
- Ethereum price remains below $1,900, with the daily chart showing resistance between $1,887 and $1,918.
- A 4-hour descending channel places $1,875 as the first breakout level for buyers.
- Liquidation clusters near $1,900 and $1,940 could accelerate an upside move if resistance breaks.
- EIP-8361 would gradually burn validator rewards, reaching a 100% burn rate at a 50% staking ratio.
Ethereum price struggles below $1,900
According to data from crypto.news, Ethereum (ETH) price was trading at $1,868 at the time of writing, little changed over the previous 24 hours. The price has repeatedly failed to hold above $1,900 since late July, leaving the psychological $2,000 level out of reach.
The daily chart shows ETH trading below its 20-day simple moving average at $1,887.53. The 100-day SMA at $1,918.22 creates another resistance level, while the 200-day SMA remains higher at $2,074.86.
That structure leaves Ethereum below three of its four major moving averages. ETH is still holding above the 50-day SMA at $1,788.07, however, preserving the recovery that began after the June sell-off near $1,500.
The Bull Bear Power indicator has slipped to minus 14.96. The negative reading suggests sellers retain a small advantage, although the indicator remains far above the deeply negative levels recorded during the June decline.
ETH approaches a descending-channel breakout
The 4-hour chart places Ethereum near the upper boundary of a descending channel that has guided price lower since the July 27 peak near $1,975.
The immediate breakout area sits between $1,875 and $1,885. A 4-hour close above the channel and the daily 20-day SMA would give buyers an opportunity to retest $1,900.
Momentum remains weak rather than decisively bearish. The Aroon Up reading stands at 14.29%, while Aroon Down is at 0%. Both readings being near the bottom of their range indicate that neither side has established a strong short-term trend.
Chaikin Money Flow is slightly negative at minus 0.02. That points to modest net selling pressure and shows that ETH has yet to attract the sustained capital inflows needed for a clean breakout.
Failure to clear the channel could send Ethereum back toward $1,850. Below that, the 50-day SMA around $1,788 and the psychological $1,800 level form the main support zone.
Liquidation levels could pull ETH toward $1,940
CoinGlass’ one-week liquidation heatmap shows several pools of leveraged positions above Ethereum’s current price.
Liquidity has accumulated around $1,890 to $1,905, with a much larger concentration near $1,940. These levels could act as short-term price magnets if ETH breaks above its descending trendline.
A move through $1,940 would open the way toward $1,975 and $2,000. However, the daily 100-day SMA at $1,918 must first be reclaimed for the bullish setup to gain credibility.
Liquidity is also visible below the market around $1,850, $1,820 and $1,800. A rejection below $1,900 could therefore trigger long liquidations and pull ETH toward the lower clusters before another recovery attempt.
Analyst Michaël van de Poppe identified $1,800 as the decisive support level. He expects a break above $2,000 to place $2,300 to $2,500 within reach.
“ETH holds a crucial support level at $1,800,” van de Poppe said. “A breakout to $2,000+ is simply on the horizon.”
EIP-8361 brings staking rewards into focus
The technical test comes as Ethereum developers debate EIP-8361, a draft proposal designed to taper consensus-layer issuance as the share of staked ETH increases.
The proposal would burn a progressively larger share of validator rewards. At a 50% staking ratio, all newly issued consensus rewards would be burned instead of paid to validators. Transaction fees and maximal extractable value would remain separate sources of validator income.
EIP-8361 is not a hard cap on how much ETH can be staked. Instead, it seeks to remove the issuance-based incentive to keep staking once the ratio approaches 50%. The proposal remains under discussion and has not been approved for a network upgrade. Six authors, including Ethereum Foundation researcher Justin Drake, submitted the draft on Aug. 4.
The plan has divided members of the Ethereum ecosystem. Aave founder Stani Kulechov argued that developers should prioritize privacy and Ethereum’s role in the financial system instead of adjusting staking issuance.
Ted Pillows supported that view, writing:
“ETH should be focused on capturing more value and scaling the network. Build a valuable, scalable flywheel, not spend time talking about reducing staking fees.”
The proposal could support ETH’s long-term supply outlook by limiting new issuance, but it does not provide an immediate price catalyst. Its near-term effect remains largely tied to market expectations and the debate over validator incentives.
Can Ethereum reclaim $2,000?
Ethereum’s first bullish confirmation would be a 4-hour close above $1,885, followed by a daily move through the $1,918 to $1,940 resistance range.
Clearing those levels could trigger short liquidations and allow ETH to retest $1,975 and $2,000. A sustained break above $2,000 would then bring the 200-day SMA at $2,074 into focus.
The bearish scenario begins with another rejection below $1,900. Losing $1,850 would expose $1,820 and $1,800, while a daily close below the 50-day SMA at $1,788 would weaken the broader recovery structure.
For US investors, Ethereum’s ability to reclaim $2,000 will depend more on spot demand, broader risk appetite and institutional flows than on EIP-8361 alone. The proposal may shape ETH’s longer-term issuance policy, but price must first escape its short-term descending channel.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
