Ethereum Surges Past $1,750 Amid Rising ETF Inflows and Activity

Ethereum’s price has surged past $1,750, reaching a high of $1,834 amid significant ETF inflows of $38.8 million—the highest since February. Active addresses rose by 10%, indicating growing interest. Technical trends suggest ETH may test resistance at $1,820, with a potential target towards $2,000. The upcoming Pectra upgrade on May 7 could further enhance market conditions.

Ethereum’s price has surged recently, breaking through the $1,750 resistance mark to reach as high as $1,834. This surge coincides with notable institutional interest, as US spot Ethereum ETFs recorded inflows of $38.8 million, marking the highest level since February. This recent spike, coupled with an increase in network activity, suggests a potential for further price rises.

Currently, Ethereum is trading above $1,720 while sitting above the 100-hourly Simple Moving Average. After this price increase, the cryptocurrency is now in a phase of consolidation, holding above crucial support levels, which is a positive sign for traders looking for stability after the recent highs.

The rising inflows into Ethereum ETFs highlight a potential shift in institutional sentiment. Fidelity’s FESH and Bitwise’s ETHW were key contributors to this recent inflow, adding $32.7 million and $6.1 million, respectively. This marks a notable change in the market after months of outflows that had accumulated to nearly $1 billion since February.

From a technical standpoint, Ethereum is at a pivotal moment, testing significant resistance levels after a rejection at its 50-day Moving Average. The cryptocurrency’s trajectory has been somewhat negative since December, with bulls now hoping for a breakout above this downward trend line.

Currently, Ethereum is facing resistance near the $1,820 level, with any move above that potentially aiming for $1,880. Importantly, a sustained rise over $1,820 could lead to targets even closer to $2,000. However, if the resistance holds, we might see Ethereum testing support levels at around $1,780 and $1,740.

On-chain activities are hinting at a resurgence of interest in Ethereum. The number of active addresses has surged by about 10% over just 48 hours, climbing from roughly 306,000 to over 336,000. This increase, while not a guarantee of price movement, often indicates a bullish shift in investor sentiment.

ETH recently overcame the restrictive $1,650 mark, which had been a hindrance since mid-April. This upward trend is further supported as ETH trades above both the 10 and 20-day moving averages, reflecting strengthening short-term momentum. The Relative Strength Index sits just above the neutral zone, suggesting positive momentum may still be building.

Moreover, some traders appear to be taking profits amid the rise, with exchange net inflows surpassing $150 million recently. Interestingly, during the last 24 hours, a significant amount of $81.82 million in ETH futures was liquidated, indicating a volatile trading environment.

Transaction fees on the Ethereum network are still relatively low, averaging around $0.31 per transaction. This could suggest that on-chain demand is yet to fully materialise, even as usage costs remain low.

Looking forward, Ethereum’s upcoming Pectra upgrade set for May 7 promises various enhancements that could boost the Ethereum network. Improvements like wallet recovery options and transaction batching may enhance user experience and attract more participants to the ecosystem.

As analysts peer into the future, many hold an optimistic outlook for Ethereum. Current technical indicators suggest a strong support level may be forming around $1,629, providing a base that could foster further upward momentum. Analysts project that, should this support hold, ETH price could potentially reach beyond $4,000 by late 2025. Ethereum remains in a pivotal phase, facing immediate resistance at $1,820 and support at $1,740, making its next moves crucial.