BlackRock’s $19.65M purchase of 10,897 ETH raises institutional interest in Ethereum. Ethereum is currently trading around $1,805.16, facing resistance at $1,850 ahead of the Pectra upgrade. Analysts notice price similarities to past market lows. Market watchers are cautious about potential downward movements while hoping for bullish patterns to emerge.
Ethereum’s price movement has garnered a lot of attention lately, particularly following BlackRock’s recent purchase of 10,897 ETH for about $19.65 million through Coinbase. This comes as the cryptocurrency trades at $1,805.16, signaling a modest gain of 1.14% in the last 24 hours. With tensions in the crypto market, analysts are keeping a close eye on ETH’s performance right before the upcoming Pectra upgrade on May 7.
The buzz around BlackRock’s acquisition led to significant discussion on social media channels within the crypto space. Institutional purchases like this tend to reflect growing investor confidence, even though they don’t guarantee price hikes. Market participants leaned towards optimism, albeit with a sense of caution, particularly as Ethereum encounters challenges in breaking through its resistance levels. Observers are monitoring trading patterns to discern whether this influx of buying pressure could spark further accumulation for ETH or lead to it staying stagnant.
Currently, Ethereum is testing a resistance zone near $1,850. This level has proven to be particularly resilient, hampering the upward momentum in recent weeks. Analysts like Mr Kelvin suggest that ETH needs to clear this ceiling with solid trading volumes to signal a credible breakout. If ETH can hold above this area convincingly, it could lead to a retest of that zone, establishing it as new support. However, if the price fails to break through, Mr Kelvin pointed out that a drop to around $1,537 is possible, where buyers previously showed interest.
Technical analysis reveals a possible double bottom formation between $1,537 and $1,800, hinting at a potential reversal in price movement. Analyst CryptoJack remarked that this support level has served buyers well in past downturns. Another critical factor is the Supertrend indicator, which currently presents a barrier above the price level, signalling that a confirmed upward shift requires ETH to break this line decisively.
Furthermore, traders are eyeing the Fibonacci level at $2,045 as a potential challenge, one that might be hard to overcome without a surge in buying activity. If Ethereum can maintain a daily close above $1,880, the pathway to approaching $2,000 becomes more plausible.
In terms of market valuation, on-chain data suggests that ETH is currently trading at relatively low levels compared to historical benchmarks. Michaël van de Poppe, a noted market analyst, highlighted that Ethereum now sits at its lowest valuation since some significant previous market bottoms. He pointed to metrics like the MVRV Z-score, which often signal accumulation phases, indicating that dedicated investors might find current prices appealing. This sentiment is further amplified with the anticipation surrounding Ethereum’s May 7 Pectra upgrade, which could lead to vital technical and operational changes.
