Ethereum Surges Past $1,750 Resistance: Key Insights and Future Projections

Ethereum has exceeded the $1,750 resistance level, reaching a high of $1,834, with a 10% rise in active addresses and $38.8 million in net institutional inflows. The technical outlook is positive, with potential gains if resistance levels are surpassed. The upcoming Pectra upgrade on May 7 may further stimulate interest and network capacity, supporting a long-term bullish trend.

Ethereum (ETH) has recently surpassed the $1,750 resistance, achieving a peak of $1,834 before entering a consolidation phase. This surge follows a significant period of sideways trading in April, where it struggled to break above $1,650. Optimism is bolstered by technical indicators that suggest a continuation of this uptrend, especially if the $1,820 resistance is also cleared.

A notable increase in institutional investment has been observed, with US-based Ethereum ETFs receiving $38.8 million in net inflows, primarily from Fidelity and Bitwise. This capital influx is significant, reversing almost two months of outflows that totalled nearly $1 billion. This shift in sentiment indicates growing institutional confidence in Ethereum as a viable investment.

On-chain metrics are pointing towards a rise in user engagement, illustrated by a 10% increase in active Ethereum addresses from April 20 to April 22, moving from 306,000 to over 336,000. This uptick signals an increase in network activity, suggesting strong organic demand rather than speculative trading. Remarkably, transaction fees remain low at around $0.31, allowing users to engage with decentralized applications without incurring the high costs typical during bull markets.

The technical analysis shows ETH has improved its outlook after escaping a long-term descending channel. Current resistance levels are noted near $1,820, with subsequent hurdles at $1,840. A successful breach above these could lead towards significant psychological price points of $1,880 and $1,920, while $2,000 remains a key target to affirm ongoing bullish sentiment.

Despite bullish indicators, caution is advised as the Relative Strength Index (RSI) is above the neutral line but suggests moderate momentum. There’s a possibility of price consolidation if buying pressure diminishes, with established support at $1,780 and stronger support at $1,740. Moreover, the futures market experienced significant liquidations, with $81.82 million in closed positions, reflecting the volatile nature of the current market.

Looking ahead, the upcoming Pectra network upgrade, scheduled for May 7, may provide additional bullish momentum. This enhancement aims to improve network efficiency, introducing features like new wallet recovery methods and increasing the staking limit to 2,048 ETH. Historically, such upgrades have correlated with positive price movements, signalling ongoing development and innovative responses to user needs.

Long-term forecasts remain cautiously optimistic, with projections indicating a solid support base around $1,629 that could facilitate future gains. Analysts speculate on targets of $2,506 and $3,708, with more ambitious estimates suggesting the potential for ETH to revisit all-time highs by late 2025. The immediate focus, however, is on overcoming the $1,840 resistance, a critical factor in confirming a bullish market transition.