Ethereum is approaching a major resistance level at $1,865 with rising institutional support. Currently trading at $1,799, it faces strong overhead resistance and multiple bearish challenges. Meanwhile, derivatives traders anticipate a breakout with increasing long positions. The upcoming Pectra upgrade could boost institutional interest, as demonstrated by recent net inflows into Ethereum ETFs. A decisive movement past $1,865 could pave the way for ETH to surge toward $2,489, with crucial support around $1,500.
Ethereum is nearing a significant resistance point at $1,865 as institutional support starts to make a comeback. Currently, ETH is trading at about $1,799 after briefly dipping to a 24-hour low of $1,753. The pressing question now is whether it can break through to $2,489 amidst this turbulent landscape.
The daily price chart indicates Ethereum is on a bullish recovery run, with a notable surge of nearly 13% last week. However, the bulls are facing stiff resistance right around the $1,850 mark, which is compounded by a supply zone that extends to the 23.6% Fibonacci level at $1,864. This situation has caused the bullish trend to cool off somewhat, and a dip in momentum has raised concerns of a negative crossover on the MACD. So, it’s really a tug-of-war at the moment.
In this tightening grip of supply pressure, a breakthrough could potentially release significant trapped momentum. Interestingly, despite this overhead resistance, traders in the derivatives market are gearing up for a breakout. Long positions in the last eight hours surged by 51.47%, pushing the long-to-short ratio to above 1, indicating a bullish sentiment.
Positive market sentiment is also building ahead of the upcoming Pectra upgrade on May 7. If executed well, this could pave the way for Ethereum to achieve wider adoption. The upgrade promises faster transactions, lower gas fees, and improved scalability, which might draw more buyers into the ecosystem. Notably, the Ethereum ETFs have recorded a weekly total net inflow of $157 million, ending an eight-week streak of net outflows. On April 25, BlackRock alone saw an inflow of $54.43 million in Ethereum, reinforcing faith in the largest altcoin.
Recently, a notable whale made headlines by purchasing 30,000 ETH worth $54 million in over-the-counter trading. Adding another layer to this narrative, the hacker behind the Bitrue incident sold off $2.88 million worth of HOT and SHIB tokens, then bought 1,511 ETH at around $1,911. The hacker has moved some ETH through Tornado Cash and still holds a significant amount of DAI and ETH across various wallets.
Looking ahead, as the sentiment steadily improves, ETH’s price analysis suggests that if it can exceed the resistance at the 50 EMA near $1,865, bulls might set their sights on the 200-day EMA which currently sits at $2,489, a crucial level near the 50% Fibonacci retracement level at $2,424. This could present a potential upside of almost 40%. On the other hand, support remains crucial, with $1,500 being an important psychological marker.
In conclusion, Ethereum stands at a critical juncture, balancing on the edge of a potential breakout that could reshape its price trajectory in the near future.
