Ethereum (ETH) trading around $1,800 is caught in a symmetrical triangle, with significant support at $1,775-$1,785. Long-term holders have increased their wallets by 22% recently, despite overall price weakness. Indicators suggest upcoming volatility, with increasing options trading volume and bullish sentiment in the derivatives market. The Pectra network upgrade is also on the horizon, set for May 7, which may influence Ethereum’s outlook positively.
Ethereum, commonly referred to as ETH, has been caught up in a symmetrical triangle pattern hovering around the $1,800 mark. As investors keep a keen eye on the technical indicators, this formation has seen the price fluctuate while forming lower highs since last month’s peak near $1,910. Crucially, the current price of roughly $1,806 is at a pivotal point where various technical levels converge, indicating that a significant move might soon unfold.
The trading zone between $1,785 and $1,800 is notable as it represents both horizontal support and the lower boundary of this triangle. Plus, it aligns with the 200 EMA, a popular technical indicator, creating a sturdy support area. However, resistance looms threateningly at the triangle’s upper boundary, which runs from $1,845 to $1,850. This level has proven challenging for bulls, showing a strong rejection of bullish attempts over the past fortnight.
Despite some hesitation among retail traders, recent data reveals a contrasting trend among long-term ETH holders. According to information from CryptoQuant, these seasoned investors increased their holdings from 15.53 million ETH on March 10 to an impressive 19.03 million ETH by May 3. That’s a sizeable rise of 22.54%, all while the market continues to show vulnerability. Many of these wallets remain in unrealized losses, yet the accumulation trend remains firm, suggesting that these holders are committed and unfazed by momentary price swings.
Ethereum’s price has battled downward pressure since hitting a high of $4,107 in December 2024. Interestingly, the determination of long-term holders to keep accumulating shows a belief in ETH’s future despite the dip. Current volatility markers hint that an important price shift could be on the way. For instance, the Keltner channel’s tightening between $1,768 and $1,867 suggests an impending change, and the Bollinger Bands offer a similar perspective on possible volatility.
Turning to the derivatives market, there are some bullish indications emerging. ETH trading volumes rose dramatically, climbing 26.51% totalling around $46.3 billion, while options trading volumes jumped nearly 75% reaching approximately $357.69 million. What’s particularly noteworthy is the long-to-short ratio on major exchanges, which shows that bulls are outshining bears by more than two to one. On Binance alone, that ratio has hit 2.24, and on OKX it stands at 2.04.
Further insights from Binance’s top traders push that ratio to 2.76, exemplifying a stronger bullish sentiment among more experienced participants. Notably, in the last 24 hours, $40.67 million in liquidations occurred, with about $8.10 million being from short positions. This consistent trend of short liquidations indicates a growing upward pressure.
The ETH/USD charts reveal crucial EMAs clustered between $1,779 and $1,818—this zone is likely to dictate the next price direction. A significant dip below the $1,775 mark could trigger a decline towards $1,720-$1,740, with further drops possible if selling escalates. Conversely, if Ethereum can reclaim $1,846, it might shift momentum back to buyers, paving the way for a potential rise back up to $1,910 or even $1,950.
Traders are keenly focused on the upcoming Pectra upgrade scheduled for May 7, which aims to elevate the validator staking limit from 32 ETH to as much as 2,048 ETH. This change is likely to enhance network efficiency and throughput by allowing additional data blobs per block—a welcome update.
Amidst all this, some analysts are pointing at the current price as an attractive entry point, with one even comparing it to buying Bitcoin at $4,000. The emphasis on Ethereum’s increasing role in real-world asset tokenization and institutional interest adds to the intrigue. Given the whale accumulation, neutral technical indicators, bullish positioning in derivatives, and the impending protocol upgrade, Ethereum seems to be standing on a potential turning point. In the next day or so, eyes will be glued to that critical $1,775-$1,785 support zone. Maintaining stability here could indeed set the stage for a push towards $1,850 and potentially even $1,910 if market momentum shifts positively.
