Summary of "3 Reasons Why Ethereum May Continue Its Rally in August"

Author: Yashu Gola

Published: July 31, 2026

Key Points

• Ethereum has historically gained an average of 18.1% in August after closing July higher, with positive returns in three out of four comparable years.
• A double-bottom breakout pattern suggests Ethereum could target prices between $2,100 and $2,180, provided the $1,805 neckline holds as support.
• A confirmed cup-and-handle breakout in the ETH/BTC pair above 0.0300 BTC could further strengthen Ethereum's dollar rally, potentially pushing prices above $2,200.

Historical Performance

According to CoinGlass data, Ethereum has typically continued its upward trend in August following a positive July. The statistics indicate:

• Positive performance in 75% of the cases (3 out of 4 years).
• An average return of +18.10% in August.
• A median return of +22.05%, significantly stronger than the unconditional August record of 7.39% average gain and a median loss of 4.54%.

Technical Analysis

Double Bottom Pattern

The daily chart for Ethereum indicates a potential double-bottom reversal, with two comparable lows around the $1,520 mark in June and July. Following a breakout above the neckline at $1,805, the bullish case is strengthened. If this breakout holds, the price could move towards the $2,100–$2,180 range, coinciding with the 200-day simple moving average at approximately $2,111.

However, if Ethereum closes decisively below $1,805, it could weaken the bullish outlook and expose the price to a retest of the $1,700 area.

Cup-and-Handle Setup

Additionally, a cup-and-handle pattern on the ETH/BTC daily chart suggests that Ethereum may outperform Bitcoin in August. The cup formed between May and July, with a base near 0.0254 BTC and a neckline around 0.0298–0.0300 BTC. A decisive close above 0.0300 BTC could confirm this breakout, potentially leading to a price target of 0.0345–0.0355 BTC, representing a 20% upside relative to Bitcoin.

This relative strength could bolster Ethereum's dollar value, especially if Bitcoin remains stable or rebounds. For instance, a 20% rise in the ETH/BTC pair, with Bitcoin prices flat, could imply a similar gain in ETH/USD, potentially pushing Ethereum above $2,200. Conversely, a significant decline in Bitcoin could limit Ethereum's gains.

Conclusion

Overall, the article presents a bullish outlook for Ethereum in August, supported by historical performance data and technical analysis. The potential for significant price movements hinges on key support levels and the performance of Bitcoin.