If you zoom out ETH’s chart, you will notice that its performance in July has similarities with its performance in March. Could this performance offer some insights into how ETH will perform in August?

ETH’s latest rally kicked off in mid-July and managed to push the crypto up by as much as 74%. More importantly, its price seemed to be stuck in a low-volatility range after its sharp crash from April to June.

Similarly, ETH rallied by roughly 42% from around mid-March, after being stuck in a low-volume range. It was preceded by a sharp crash between November 2021 and January 2022.

Source: TradingView

If ETH follows a similar pattern as it did in March, then August should deliver a bearish performance. Although this is entirely possible, most of the dynamics currently driving its price action are different now, compared to what was the case in March.

One of the main differences is that ETH has almost doubled its drop from the ATH. Ethereum plans to roll out the final testnet called Goerli towards the end of the first week of August. The mainnet Merge is expected to take place in September. This means August is a critical month for the network and the altcoin.

Cryptocurrencies often rally a few weeks before their native networks go through a major upgrade. The Merge is the biggest network upgrade in Ethereum’s history. By the same premise, we can expect ETH to attract a lot of buyers in the weeks ahead of the Merge. Perhaps, this will also encourage investors to hold on to their ETH, rather than selling before the Merge.

The aforementioned expectations are consistent with ETH flows, especially over the last few days. Despite its rally, however, the number of active ETH addresses and receiving addresses fell slightly in the last 4