Ethereum’s price surged by 15%, exceeding $1,800, outperforming Bitcoin’s 6% increase. Despite this recovery, there are concerns over institutional selling and declining on-chain activity. Technical indicators suggest potential further gains if it surpasses $1,800, with catalysts such as staking ETF approvals and the Pectra update on the horizon. Analysts remain optimistic about ETH’s price trajectory, hinting at a market-wide impact if ETH continues to rally.
Ethereum (ETH) has recently experienced a significant surge, climbing nearly 15% within 24 hours and surpassing the $1,800 mark on April 23. This upward movement has outperformed Bitcoin, which gained 6% in the same timeframe. The broader cryptocurrency market also showed improvement, reclaiming a total market value of $3 trillion, alongside ETH’s recovery from a recent low of $1,400 after the crash on April 9.
The recovery in Ethereum’s price has helped boost its market dominance, which had dropped to a historical low of 7% on April 22, according to TradingView. Technical analysis indicates that a crucial resistance level exists just below $1,800. A successful break above this barrier could lead to further gains towards $1,850 and the psychologically significant $2,000 threshold, which has not been achieved since early March. Analysts note that the market is currently experiencing a short squeeze, significantly influencing the recent price spike.
Nonetheless, Ethereum is not without challenges. Institutional selling remains a pressure point, with notable entities like Galaxy Digital and the Ethereum Foundation transferring over 72,000 ETH to centralised exchanges, signalling potential selling activity. Additionally, on-chain metrics reveal a 56% drop in transaction fees within a week and an 88% decline over three months, suggesting decreased network activity and waning investor interest. This weak demand indicates that a sustainable price recovery may require stronger organic engagement from investors.
Looking forward, several potential catalysts could drive future price growth. A reduction in short interest from CME futures has alleviated some downside risks, predisposing Ethereum to respond positively to any favourable developments. Expected catalysts include the potential approval of staking for Ethereum-based ETFs, possible U.S. Federal Reserve rate cuts, and the Pectra update, aimed at enhancing the protocol’s scalability and performance.
Additionally, the ETH/BTC trading pair has plummeted to a five-year low of 0.017, suggesting investors currently prefer Bitcoin. Despite this, there is optimism as market analysts predict a bullish trend for ETH, with some comparing its current performance to Bitcoin’s successful run in late 2024. With the crypto community keenly observing, Ethereum’s journey through key resistance levels will determine its near-term trajectory.
