Ethereum (ETH) Rises to $1,942 After Weak U.S. Jobs Report

Ethereum News

Ethereum (ETH) climbed to $1,942 on Coinbase on Aug. 7, reaching a 10-day high after weaker-than-expected U.S. employment data reduced expectations for another Federal Reserve rate increase. Official labor figures showed July nonfarm payrolls fell by 23,000, while market participants had expected an increase of roughly 80,000 to 95,000. The unemployment rate eased from 4.2% to 4.1%, average hourly earnings rose only 2 cents to $37.62, and annual wage growth cooled to 3.2%, the weakest pace in about five years. Labor force participation slipped to 61.4%. Exchange-derived rate odds moved quickly after the release: the chance of the Fed holding policy steady rose to 55.9%, compared with a 44.1% chance of another hike, reversing earlier positioning that had briefly placed hike odds near 73%. The move aligned with risk assets, as the S&P 500 gained 0.5% to about 7,750 and set an all-time high. Crypto majors followed, with nine of the top 10 assets by market value advancing while only Hyperliquid declined. Derivatives data showed short traders absorbed much of the move: about 75% of intraday liquidations in Bitcoin and Ethereum were shorts. In ETH alone, $31.6 million in positions were closed, including $23.4 million in short positions. The macro impulse also coincided with improving network liquidity. On-chain data showed stablecoin supply on Ethereum rose by roughly $700 million during the first week of August to $156.7 billion, after two months of declines from about $170 billion. New smart-contract deployment activity increased 18.5% week over week and stood about 50% above its three-month average, suggesting fresh usage rather than simple rotation from ETH into stablecoins. Whale activity remained subdued, with the largest exchange-transfer volumes running about 41% below their 90-day average, while industry debate continued over a proposed change to Ethereum staking rewards, a topic drawing criticism from figures linked to Lido's roughly 21% staking share.

Earlier technical data framed that macro-driven push as a breakout attempt from a tight range rather than a completed trend change. The same session's market structure had Ethereum hovering near $1,903.44, with a modest 24-hour decline of 0.19% before the latest macro impulse. Spot turnover remained unusually deep for such choppy action, with roughly $7.2 billion to $8.7 billion changing hands daily across primary venues. That liquidity profile matters because it suggests the market is not suffering from withdrawn capital, but from indecision about direction. Live feeds also showed fragmented pricing across trading desks, a pattern often associated with transitional accumulation rather than clean directional conviction. The charts reflected mixed signals: weekly pressure remained visible, while short-term order books defended key liquidity pockets aggressively. Order-book density was concentrated between $1,713 and $1,740, a zone that functions as the near-term lower boundary for the altcoin leader's structure. A decisive loss of that band would weaken the short-term setup and open the path toward deeper liquidity levels. On the upside, sellers appeared around $1,950 and then near the psychologically important $2,000 threshold. If buyers absorb supply at those levels, the next technical objective outlined in the data is $2,100, although reaching it would require sustained spot demand rather than a brief derivatives squeeze. The range has been narrowing for some time, a condition that often precedes volatility expansion. This setup leaves traders weighing two clear scenarios: a break above overhead supply could convert the current consolidation into a momentum phase, while rejection could keep Ethereum trapped in sideways action. The presence of heavy volume underneath the range also argues against treating the pause as a bear-market style liquidity vacuum; participants remain active, but they are clustered around moving averages and key liquidity pockets. Until spot flows clear one boundary, the market's immediate question is whether institutional buying can lift price through $1,950 before lower support is tested.

COINOTAG's analysis ties these two signals together through liquidity rather than price alone. The primary on-chain record shows Ethereum stablecoin supply rising about $700 million to $156.7 billion in the first week of August, while new smart-contract deployments increased 18.5%. That combination matters because a range can hide accumulation: heavy spot turnover, improving network usage, and softer macro rate odds can prepare the market for a directional move. The limiting factor is whale behavior, with the largest exchange-transfer flows still 41% below their 90-day average. Until that large-holder activity returns, Ethereum's breakout case depends on spot buyers clearing $1,950 while keeping $1,713 to $1,740 intact.