Ethereum News Today: Could AVAX's Triangle Squeeze Signal a Path to $30?

Avalanche (AVAX) is showing signs of a potential breakout as technical indicators and price patterns suggest increasing momentum. The token is forming a bullish ascending triangle on weekly charts, a continuation pattern that historically has led to upward movement in volatile markets such as cryptocurrency. According to a recent analysis, if AVAX sustains above key resistance levels, it could target higher price levels, with some projections suggesting potential movement toward $30 or beyond [4].

On August 12, AVAX experienced a 13.48% price increase following a $250 million investment in Real-World Assets (RWA) and the Octane upgrade, which enhanced the blockchain's DeFi capabilities and boosted Total Value Locked by 40%. The next day, the token climbed another 7.7%, reaching around $24.77, fueled by BlackRock’s $240 million investment and growing speculation about a potential Avalanche ETF for 2025 [4].

Technical analysis suggests that AVAX is currently consolidating near a key support area, with daily trading activity showing signs of strength. Traders and analysts are closely monitoring whether the token can maintain its position above $24.77, which would confirm the continuation of the bullish trend and potentially open the door for another leg higher. Additionally, the Octane upgrade has improved Avalanche’s scalability and liquidity, making it more attractive to both institutional and retail investors [4].

However, liquidity risks remain a concern, particularly for traders relying on leveraged positions. A sharp decline in open interest in Ethereum futures, which dropped by nearly 29% in two days, reflects broader market uncertainty and has spilled over into the AVAX market [5]. This decline is often associated with traders unwinding positions after significant price swings, and it may indicate that some market participants are becoming cautious about short-term volatility.

Despite this caution, on-chain data shows a positive trend for AVAX. Approximately 200,000 ETH — worth about $888 million — were withdrawn from major exchanges, including Binance and Coinbase, in recent days [5]. While this trend is more directly linked to Ethereum, it reflects a broader shift in investor behavior, with many moving assets into cold storage or staking them for long-term value. This shift reduces the amount of ETH available for immediate sale, which may have a positive effect on AVAX and other altcoins by easing selling pressure and tightening supply.

Looking ahead, the coming weeks will be critical for AVAX as it tests key resistance levels and faces potential macroeconomic headwinds. Traders are watching for whether the token can maintain its momentum above $24.77 and whether broader market sentiment shifts in favor of risk-on assets. If AVAX can hold this level and build on its technical strength, it could be poised for a significant rally. However, any failure to maintain these levels may result in a retest of support zones or trigger further volatility in a market still navigating regulatory and macroeconomic uncertainties [4].

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