Ethereum is currently trading at $1,772.87, reflecting a slight daily increase. Major resistance points are identified at $1,800 and $1,895. Despite record single-day inflows, short-term signals show mixed momentum, pointing to cautious sentiments in the market. Possible bearish patterns have traders wary, as support levels are tested.
Ethereum is displaying signs of accumulation lately, even though the short-term technical signals are mixed and a bit confusing. The major resistance levels sit at $1,800 and $1,895, which are essential for building any bullish momentum. Right now, there are concerns about stagnation in the decentralised finance (DeFi) sector, compounded by some bearish fractals. This situation calls for a cautious approach, despite some long-term optimism.
Currently, Ethereum (ETH) is trading at $1,772.87, showing a slight increase of 0.95% over the last 24 hours. However, its trading volume has decreased by 6.78% to $15.47 billion. Across the week, Ethereum has had a solid performance, with an overall increase of 11.41%, trading at an average of $1,771.90. The current price movements suggest a mix of confusion and anticipation among traders and investors, making for an interesting situation.
When it comes to technical analysis, the indicators are a bit split. Ethereum remains above the $1,750 support level, but momentum appears to be weakening. A bearish divergence spotted on the MACD, alongside a daily loss of 1.82% with above-average volume, indicates some selling activity. On the flip side, a notable discovery rate of 84% and a robust 8.96% momentum score suggest that there’s still some underlying strength.
The Relative Strength Index (RSI) sits at a neutral 57.61 while the Average Directional Index (ADX) stands at 86.2, confirming a strong trend. However, the negative MACD crossover raises some eyebrows. For Ethereum to maintain bullish prospects, it’s vital to surpass the $1,800 level. Conversely, if it dips below $1,734, we may witness further corrections. Analysts are urging a wait for confirmations around these key levels before making long positions.
In a recent twist, Ethereum celebrated its largest single-day accumulation inflow ever, with 449,000 ETH – worth about $786 million – moving into accumulation addresses on April 22. This spike comes despite prices dropping into the $1,400 range, suggesting solid confidence from long-term holders, a sentiment rarely seen since 2018.
Despite this record accumulation, many of those addresses have a realised value of $1,981, meaning they are currently underwater, hinting at the potential for further declines. Nevertheless, the 10% rise in active addresses seen between April 20 and April 22, climbing from 306,211 to 336,366, sheds a bit of a positive light on the network’s bullish sentiment. Still, the contrast between rising network engagement and stagnant DeFi activity raises concerns about how sustainable this momentum is.
However, a trader recently highlighted a bearish pattern emerging near the $1,895 resistance area, which saw a substantial amount of 1.64 million ETH accumulated last November 2024. This same area aligns with the 50-day Exponential Moving Average (EMA), a traditional metric for trend analysis. If Ethereum struggles to clear this level, it could exacerbate its current macro bearish trend.
Veteran trader Rektproof cautioned about a potential bearish fractal, one that has echoed previous patterns leading to significant price drops. If Ethereum fails to hold its current support, it may revisit the $1,400 mark. For any hopeful bullish reversal, analysts agree that a daily close above $2,142 is crucial to disrupt the ongoing trend of lower highs and lower lows.
