#CryptoAndForex #MarketOutlook #SquareInsights

From the outset today (August 5, 2025), Ethereum (ETH) $ETH

shows bearish undertones below its key moving averages. TipRanks reports ETH’s price ($3,558.62) is trading below its 20-day and 10-day exponential moving averages—both signalling Sell—even though longer-term averages (50‑, 100‑, 200‑day) remain bullish . This mixed signal puts ETH in a neutral-to-cautious posture despite short-term downward momentum.

Meanwhile, TradingView’s technical gauge for ETH is indicating a Buy signal today and over the week—suggesting the daily strength still leans bullish—but deeper analysis reveals potential cracks if ETH fails to reclaim those 10–20‑day EMAs .

Putting this together: short-term traders should take note of ETH trading below its immediate EMAs, a classic setup for a pullback or deeper correction, especially if combined with waning volume or bearish reversals like a rising wedge or engulfing candles.

💵 U.S. Dollar Index (DXY): Poised for a Break

The U.S. Dollar Index is testing support at 98.65, following a recent drop from the 100.25 resistance zone . Analysts note that if DXY breaks and holds below 98.65, it may open the path toward 97.90 or even 97.50 —a clear bearish scenario for the greenback. On the upside, a reclaim of 99.00 could switch bias back bullish, but that has yet to materialize.

🧠 Square‑Ready Summary

At Square, you serve merchants and developers who value clarity and risk-savvy insight. Today:

ETH $ETH traders should watch the 10–20‑day EMA zone carefully. If ETH remains below those levels, short/HODL strategies may face renewed pressure. A break above them could alleviate bearish pressures, but failure to do so points to a probable pullback.

DXY-watchers should monitor the 98.65 support level. A breakdown below it may translate into weaker dollar inflows, affecting USD‑denominated assets—or alternatively strengthen non‑USD pairs.

Both setups share a theme: focus on the short‑term trend structure and key thresholds. If ETH can’t reclaim its short EMAs and DXY breaks its support, the risk-on/risk-off balance may tip.

Bottom Line:

ETH is flirting with short-term bearish signals against bullish longer-term trends. DXY is seeking direction around a pivotal level. Traders at Square (or partners using Square analytics) should keep close tabs on these thresholds—because a shift here could signal opportunistic moves or signal risk mitigation in both crypto and forex exposure.

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