Ethereum (ETH) saw a recovery to $1,817 on May 1 after dropping to $1,737 on April 30. The impending Pectra upgrade on May 7 promises major improvements. Analysts suggest ETH must break $2,200 for a potential rally towards $4,000. Significant purchases by whales indicate growing confidence in ETH’s future.
Ethereum (ETH) has marked a solid recovery, bouncing back to $1,817 on May 1 after hitting a low of $1,737 just a day prior. This cryptocurrency has demonstrated considerable volatility, and many traders are staying alert for signs that this might signal a more sustained upward movement. The coming days will be crucial as analysts scrutinise the market for data that might indicate a lasting bullish trend.
On the day of its plunge, April 30, ETH actually began with some positive momentum but soon formed a pin bar signal, which spurred a sharp decline following a bearish full-body red candle. The price encountered resistance at $1,809, marking the start of a brief bearish trend that was highlighted by a Death Cross in moving averages at 01:05 UTC. Essential support was later found at $1,790, as the price travelled up to test resistance a bit higher at $1,812, but fell short significantly.
As the hours wore on, ETH climbed back to its peak at $1,816, but not without further struggle. A subsequent drop at noon, caused by a pin bar followed by another full-body red candle, led to another downtrend. A second Death Cross signal on MACD at 12:10 UTC confirmed the bearish sentiment, driving the price down to that troubling low of $1,737 by 12:35 UTC.
However, not all was bleak. By 13:50 UTC, ETH found itself in the RSI Oversold zone, hinting there might be a trend reversal on the horizon. Right on cue, a rebound began, as prices started to rise again. Notably, a Golden Cross formation on MACD at 14:15 UTC helped validate the growing bullish momentum.
Much anticipation surrounds the upcoming Pectra upgrade on May 7 — this could act as a significant catalyst in lifting ETH from its protracted state of consolidation. Key enhancements are set to address scalability, user experience, and staking efficiency through 11 Ethereum Improvement Proposals (EIPs). One noteworthy proposal is EIP-7702, allowing standard user wallets to function as temporary smart contracts, which has potential implications for gas fees and fee sponsorship, broadening usage scenarios particularly for non-technical individuals.
Changes in staking rules might entice institutional players as well — validators will now be able to stake amounts up to 2.48 ETH, much lower than the previous requirement of 32 ETH, and on-boarding processes should be more user-friendly.
Technical analysis is not overlooking a rare Dragonfly Doji candlestick pattern that has formed monthly, a signal historically linked with significant price recoveries. This comes alongside Ethereum retesting its long-standing parabolic support zone, which has often served as a launch point for upward trends.
The sentiment is optimistic enough that analysts, including those from Rose Premium Signals, underscore the potential for ETH to continue rallying, especially if it can break through the key resistance level of $2,200. Crypto expert Kamran Asghar too notes the Bull Flag pattern developing and reiterates the crucial nature of exceeding the $2,200 mark as pivotal for sustained bullish action.
Moreover, whale activity has surged recently, as on-chain data reveals that significant investments of nearly 30,000 ETH, worth $50.24 million, were made in less than four hours — a strong signal that large investors have confidence in the coin’s trajectory. As we move further into May, ETH seems to be holding strong at the $1,817 mark, with real possibilities for more upward movement if it maintains power above those critical resistance levels.
