Summary
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Ethereum Rebounds, Tests Key Resistance: After finding strong support near $1,550, ETH has bounced back to test the 1,800-1,950 resistance zone, with analysts watching for a potential triple bottom pattern signaling a trend reversal.
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Whale Activity & Technical Signs: Increased large transaction volumes (“whale activity”) in April, alongside a bullish crossover in short-term EMAs, suggest possible accumulation and underlying strength, despite some mixed short-term indicators like the RSI remaining below 50.
Following a successful rebound from support levels near $1,550, Ethereum‘s price (ETH) is showing tentative signs of recovery.
The cryptocurrency is currently contending with the $1,800 price area, prompting investors to assess whether it possesses the strength to breach and maintain levels above the critical $2,200 mark, which would be necessary to confirm a more robust bullish trend and support a sustained price increase.
Support Established, Initial Resistance Tested
Ethereum has managed to push above the significant resistance band previously found between $1,700 and $1,800.
Achieving a daily closing price consistently above $1,800 could signify an important shift in the prevailing market structure.
Highlighting a specific technical milestone, crypto analyst Ali Charts mentioned via X that Ethereum needs “to secure a daily close above $1,950 to trigger a buy signal from the SuperTrend indicator.”
However, a degree of caution is still warranted.
While ETH has reclaimed territory within the former resistance zone, establishing sustained momentum above $1,800 is vital for clearer bullish confirmation.
An inability to hold above the $1,750 level could leave the price vulnerable to renewed selling activity.
Moving Averages and Whale Activity Signal Potential Strength
Technical indicators, while mixed, offer slightly positive leanings.
Short-term Exponential Moving Averages (EMAs) for Ethereum, likely representing the 9 and 21-day periods, have recently performed a bullish crossover.
Such crossovers frequently precede upward price moves, particularly when validated by increased trading volume.
Furthermore, activity from large holders (“whales“) has garnered attention.
Data reveals spikes in large transaction volumes occurred in early February and April, reaching peaks of up to 16,000 such transactions per day.
Subsequently, this activity stabilized, averaging between 4,000 and 8,000 large transactions daily.
Analysts often interpret this stabilization following peaks as a consolidation period by major market participants.
Another significant increase in large transactions observed in early April coincided with a brief price rally.
This pattern supports the hypothesis that whales may be accumulating ETH during price dips, potentially laying a strong foundation for future upward movements.
Key Ethereum Price Levels: Resistance at $1,950 and $2,200
The immediate upside target for ETH appears to be near the $1,950 level.
Should bullish momentum intensify, the next significant target would likely be around $2,300.
According to crypto trader Nebraskangooner, confirming the continuation of the bullish trend requires Ethereum to close a daily candle above the orange zone at $2,200.”
Conversely, failing to secure closes above $1,800 could stall the recovery.
In such a scenario, ETH might revisit lower support zones at $1,700, $1,650, or possibly $1,620.
A decisive break above the pivotal $2,200 resistance, however, would likely clear the path toward higher levels, such as $2,300 and $2,700.
Steady volume levels, lacking evidence of aggressive selling, currently support the idea of price consolidation rather than widespread distribution by holders.
A convincing move above $2,200 could attract new buyers, potentially leading to heightened volatility and a stronger rally.
Short-Term Caution Advised Amid Mixed Indicators
Despite the recovery efforts, some near-term indicators advise prudence.
The hourly Moving Average Convergence Divergence (MACD) suggests that bearish pressure might be lessening.
The Relative Strength Index (RSI) remains below the midpoint of 50, indicating a lack of strong bullish momentum.
Ethereum’s price is also positioned just below its 100-hour simple moving average, another critical level for short-term trend confirmation.
Analysts also flag the risk posed by uncertain price action around the $1,750 resistance.
If such volatility occurs alongside rising sell volume, it could signal short-term weakness.
Crypto analyst Nebraskangooner noted this possibility, stating, “The fact that this deviated above resistance and is rejecting increasing volume makes me think it will drop back.”
Should ETH lose support at $1,750, a further decline towards $1,700 or $1,650 could occur.
Therefore, maintaining current support levels and overcoming key resistance zones are crucial preconditions for continued price growth.
The price trajectory over the coming days will be telling.
A daily close decisively above $2,200 would strongly indicate a bullish breakout, potentially signaling the start of the next upward move towards $2,300 and higher levels.
Also Read: Vitalik Buterin Plans For Ethereum’s bitcoin Transition
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
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