Bitcoin remains within a newly formed sideways channel, once again attempting yesterday to break above the 115,500 level. Ethereum also shows resilience, which is confirmed by recent activity metrics.

On August 6, the Ethereum network recorded 1.87 million transactions — a near-record figure, close to the all-time high of 1.96 million set in January 2024. This surge in activity certainly deserves close attention and highlights several potential factors influencing the functioning and popularity of the Ethereum network.

First and foremost, the continued growth of the DeFi sector (decentralized finance) is worth noting. The active use of DeFi protocols — including platforms for lending, swapping, and staking — generates a significant volume of transactions on the Ethereum network. The growing number of users and the increasing complexity of DeFi applications are directly contributing to higher network load.

The uptick in activity is also linked to rising volumes in stablecoin transactions (USDC, USDT) and on decentralized exchanges (DEXs). These intertwined factors create a complex picture where high activity is both an indicator of Ethereum's network health and a potential source of congestion. The increased USDC and USDT transaction volumes suggest growing trust in stablecoins and their wide use in various financial operations.

Decentralized exchanges also significantly contribute to total network activity. DEXs allow users to trade cryptocurrencies directly, without intermediaries, enhancing transparency and security. Their rising popularity stimulates a higher number of Ethereum transactions, since each trade requires blockchain confirmation.

Going forward, I will continue to base decisions on any major dips in Bitcoin and Ethereum, expecting the medium-term bullish trend to remain intact.

Below are the specific short-term strategies and trade setups.

Bitcoin

Buy Scenario

Scenario #1: Buy Bitcoin today at the entry point around 114,800, targeting a rise to 115,600. I plan to exit longs around 115,600 and immediately open short positions on the bounce.

Before breakout buying, make sure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario #2: Buy Bitcoin from the lower boundary at 114,400 if there's no market reaction to a breakout, targeting a reversal back to 114,800 and 115,600.

Sell Scenario

Scenario #1: Sell Bitcoin today at the entry point around 114,400, targeting a drop to 113,400. I plan to exit shorts around 113,400 and open long positions on the bounce.

Before breakout selling, ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Sell Bitcoin from the upper boundary at 114,800 if there's no market reaction to a breakout, targeting a reversal back to 114,400 and 113,400.

Ethereum

Buy Scenario

Scenario #1: Buy Ethereum today at the entry point around 3719, targeting a rise to 3798. I plan to exit longs around 3798 and immediately open shorts on the bounce.

Before breakout buying, make sure the 50-day moving average is below the current price and the Awesome Oscillator is above zero.

Scenario #2: Buy Ethereum from the lower boundary at 3663 if there's no market reaction to a breakout, targeting a reversal back to 3719 and 3798.

Sell Scenario

Scenario #1: Sell Ethereum today at the entry point around 3663, targeting a drop to 3585. I plan to exit shorts around 3585 and open long positions on the bounce.

Before breakout selling, ensure the 50-day moving average is above the current price and the Awesome Oscillator is below zero.

Scenario #2: Sell Ethereum from the upper boundary at 3719 if there's no market reaction to a breakout, targeting a reversal back to 3663 and 3585.