Several Analysts: Ethereum Still Has Downside Risk to $1600

Several analysts believe that Ethereum still has a downside risk to $1600, despite a recent 7-day increase of 13%. Arete Capital partner McKenna stated that he does not anticipate the price of Ethereum breaking through $2800-2900, but rather it may maintain range fluctuations in August and September. He pointed out that last week's plunge in Ethereum was related to market maker Jump Trading's sell-off, coupled with global economic recession concerns. From the current level, McKenna is not very optimistic about the bullish prospects for Ethereum.

Another analyst Brandt proposed two possible trends: one is to break through $2960 and start a new round of rise; the other is to break down from an upward wedge pattern and explore bearish targets at $1650.

Independent trader Morgan noted that Ethereum financing rates are showing a downward trend, reflecting a shift in market sentiment. Negative financing rates indicate shorts are paying longs, demonstrating widespread bearish sentiment. If Ethereum breaks below support at $2540, it would signal continuation of its downtrend with prices potentially falling to $1640 - a drop of 35.8% from current levels.