Ethereum Targets $3,600 Following Positive Breakout and Institutional Interest

Ethereum’s price surge targets $3,600 after breaking a five-month downtrend. Backed by strong institutional interest, including a $40 million purchase by BlackRock, bullish sentiment is rising. However, critical resistance points challenge this momentum, with traders cautious about possible dips below $1,500 if support levels fail to hold.

Ethereum (ETH) appears to be staging a significant comeback. Following a breakout from a long-term downtrend, the cryptocurrency recently surpassed the $1,790 mark on April 26. This upward movement signals an optimistic shift for traders, who are now eyeing a bullish target of $3,638, which would represent a nearly 100% increase from recent lows.

The breakout from a five-month descending channel marks Ethereum’s first significant reversal since December 2024, reigniting interest among investors. As the price settled above the channel resistance, the Relative Strength Index (RSI) climbed to 55.48, suggesting ongoing buying momentum without immediately becoming overbought.

A popular analyst, known as Mister Crypto, has been vocal about the potential for Ethereum, suggesting a “massive bull flag” formation could see its price soar beyond $10,000. His take? “Nobody is bullish enough. Bears will cry,” he tweeted, indicating widespread optimism among certain market players.

Right now, however, Ethereum’s immediate challenge lies in the $1,800–$1,850 range. Analyst Ted Pillows noted that breaking above this level could open up pathways for Ethereum to reach between $2,200 and $2,300. On April 26, the cryptocurrency briefly touched $1,816 but then pulled back slightly, prompting questions about the strength of the rally as May approaches.

Some traders are sounding alarms, though. A user named $0uL cautioned that a slip below the $1,500 mark could happen if the current momentum dissipates. This has led to speculation about potential aggressive buying should that scenario unfold.

This influx of bullish sentiment is bolstered by institutional interest. Notably, BlackRock made headlines by purchasing $40 million worth of Ethereum. This development has sparked discussions about a possible supply squeeze in the market. “Institutional investors aren’t just watching — they’re buying,” noted the CryptoELlTES account, reflecting a shift in sentiment among significant players.

Additionally, data from Market Prophit indicates increasing positivity in Ethereum’s market outlook, with both retail traders and proprietary indicators showing bullish signs. Many are now aligning their strategies for a continuation of the breakout trend as we move into May.

Yet, not everyone is fully onboard with the bullish narrative. Analyst DD pointed out a crucial support zone between $1,750 and $1,800, arguing that failure to maintain this could lead the price down to $1,200. He’s keen on waiting for a confirmed weekly close before reassessing his stance on Ethereum’s long-term prospects.

As we head into May, Ethereum’s next steps will hinge on whether it can secure a close above $1,850. Success could lead to targets around $2,200 and beyond; however, if selling resumes, we might see Ethereum drop down to $1,500 or potentially lower.

In closing, the views and opinions in this article are for informational purposes only. They do not constitute financial advice, and investing in cryptocurrency carries inherent risks of financial loss.