Ethereum (ETH) is showing a bullish breakout, with trading volumes spiking, influenced partly by market sentiment changes, including reduced tariffs by President Trump. The token broke above its 21-day EMA, suggesting a potential upward shift towards $3,000. Analysts note significant trading activity in decentralized exchanges and project short-term targets of $1,900 or higher, although selling pressure at $1,800 remains a challenge.
As of late April, Ethereum (ETH) is showing strong bullish signs that could lead it towards the $3,000 mark. On April 22 and 23, trading volumes surged remarkably, with around $23 billion in ETH changing hands, marking a significant breakout above its 21-day exponential moving average (EMA). This move appears influenced by several market factors, including President Trump’s decision to ease tensions around import tariffs, which buoyed market sentiment significantly.
Previously, analysts speculated that Ethereum might linger in a consolidation phase around the $1,500 to $1,700 range for a few months. However, this breakout may cut down that forecasted wait. This recent barometer is viewed as potentially the most optimistic signal since late last year, suggesting that ETH’s upward trajectory could be starting.
Throughout 2023, the network’s stablecoin balance has seen steady growth, rising from $111 billion to $124 billion despite an overall market downtrend. On another front, decentralized exchanges (DEXs) have also experienced a notable increase in trading activity, spiking from $9.7 billion to $12 billion over the past week. Such heightened on-chain activity often foreshadows a bullish phase for ETH’s price.
A historical analysis indicates that breaking above its consolidation triangle may lead ETH’s price towards the $1,900 mark soon. We’re getting close, but there’s been quite a bit of selling pressure hovering around $1,800, a critical point where both bulls and bears have set their sights based on trading volume patterns. If the bullish trend can push past the $1,900 threshold, ETH could eye the $2,100 range, marking a period where upward movement may continue with little resistance.
Interestingly, data shows an apparent pattern: whenever ETH emerges from oversold conditions according to the Relative Strength Index (RSI), it often rallies significantly. This has been observed again recently as prices shifted out of consolidation and towards higher levels, favouring bullish momentum.
Nevertheless, there’s still a risk that ETH might attempt to retest its former trend line support before diving into another potential downturn, reminiscent of the declines noted since December. Market sentiment, however, shows improvement; the Fear and Greed Index surged from a dismal low of 15 up to 53 in just two weeks, reflecting a neutral outlook among investors.
On the daily chart, one can see just how crucial the trading range from $1,780 to $1,900 is for ETH, as it has recorded the highest trading volumes of the year within this bandwidth. The struggle between bullish and bearish positions continues fiercely. For the time being, it appears that bulls are holding an upper hand, although it’s worth noting that momentum is now somewhat stagnant.
Recent trends in the MACD’s histogram have shown a downward shift over the past three days while the RSI appears stuck. A decisive break above the $2,000 level might solidify a bullish forecast for ETH, potentially setting the stage for an aggressive push towards reaching the much-coveted $3,000 mark.
Alejandro Arrieche is known for drafting news articles that blend technical analysis for traders with valuable insights in value investing and fundamental market shifts.
