Ethereum (ETH) is in a consolidation phase, mirroring Bitcoin while showing signs of a possible breakout. Support is stabilizing around $1800, but traders are becoming less interested due to declining volume. Institutional interest has risen, leading to ETF inflows. Recent trading actions indicate a potential bullish trend. ETH’s price corrections may lead to a rebound and could eventually aim for new highs, potentially surpassing $2200.
Ethereum’s (ETH) price is currently in a tight consolidation phase, closely mirroring Bitcoin’s movements. Despite this, there’s an increasing speculation about a potential breakout, albeit it might not happen just this month. The support level appears to be stabilizing around $1800, which has become crucial for the token. While Bitcoin makes attempts to breach its solidified range, Ethereum seems to be taking a more relaxed approach, which might be causing some traders to lose interest as trading volume has started to dwindle—a worrying sign for some in the market.
Things changed noticeably in the last week of April when Ethereum saw significant inflows from exchange-traded funds (ETFs), indicating a revitalized interest from institutional players. Reports pointed out that over 3600 ETH have been scooped up by institutions. Plus, there’s buzz about a whale offloading 14.38 Wrapped Bitcoin (WBTC), valued at nearly $1.4 million, to bring in around 758 BTC, drawing attention to significant trading manoeuvres after being dormant for years. This activity could signal a potentially bullish shift in the market as analysts detect an upcoming strong uptrend that might outshine Bitcoin’s gains.
On a monthly chart, ETH has weathered considerable upward pressure recently, with last month closing on a bearish note. However, bulls are reportedly still pushing the rally within a symmetric triangle formation, which has defied several bearish attempts to drag prices lower. The Relative Strength Index (RSI) shows a concerning downward trend, failing to breach its trend line, suggesting bears currently exert considerable control. Meanwhile, the Directional Movement Index (DMI) is demonstrating a convergence that hints at decreasing volatility and a potential future bullish crossover, which traders are keeping an eye on.
Currently, ETH appears to be on the cusp of concluding a mid-term correction and ready to trigger a robust rebound from its recent lows. There’s a sense that we’ve perhaps seen the worst, and a short-term ‘Dead-cat’ bounce could be imminent. The initial target for this bounce might be around $2500, and if the price can hold up within the tricky zone between $2700 and $3200, the bullish momentum could lead to new all-time highs (ATH) for Ethereum. Traders should be monitoring these developments closely as we move through May 2025, and speculation swirls about hitting that $2200 mark and beyond.
