Ethereum (ETH) surged 13.17% to $1,786, driven by Bitcoin’s rally and increased trading volume. Positive trends suggest a target of $1,850, although institutional movements may indicate selling pressure. Upcoming support levels to watch include $1,600, as momentum indicators remain cautiously optimistic about short-term price stability.
Ethereum (ETH) experienced a notable increase of 13.17%, reaching a price of $1,786.09, propelled by a general uptrend in the cryptocurrency market initiated by Bitcoin. The market capitalisation rose to $215.6 billion, with trading volume escalating by 70% to $25.35 billion, highlighting a surge in trader activity and interest in Ethereum.
The recent price surge aligns with a bullish bounce off a downward trendline established since March 25. ETH successfully breached resistance at $1,688, a key barrier that had previously restricted price increases since April 9. This breakout suggests the potential for a continuation of the rally, particularly if ETH can maintain the critical psychological threshold of $1,800.
Analyst @ali_charts has noted that Ethereum is poised to target $1,850, encouraged by bullish market sentiment and a rise in on-chain activity. The breakout signifies a possible shift towards bullish momentum. However, it is essential to remain cautious due to lingering wider market bearish pressures.
Ethereum has displayed strong bullish momentum, remaining above $1,550 and surpassing previous resistance levels of $1,620, $1,650, and notably $1,700 and $1,760. It even peaked at $1,803, indicating further upside could aim for $1,820. Critical resistance levels to monitor include $1,850, where a further breakout could catalyse a rise towards $1,920.
Watchpoints for continued bullish movements suggest that Ethereum might target $1,950 or even reach $2,000 soon. Currently, ETH is trading above the 100-hourly Simple Moving Average, contributing to a generally positive market outlook.
However, caution is warranted as recent Lookonchain data revealed Galaxy Digital’s divestiture of approximately $106 million in ETH to acquire Solana (SOL) on Binance. This transaction suggests a notable shift in institutional investment strategies away from Ethereum towards other Layer-1 assets like SOL.
During the rally, Ethereum briefly touched $1,725 before retreating to a trading range of $1,701, sitting just below the top Bollinger Band at $1,672. This retraction may indicate an overextended price level. Should selling pressure heighten, ETH could potentially retract to mid-Bollinger Band levels around $1,607, or drop even further to $1,542.
Despite these fluctuations, momentum indicators remain cautiously positive. The positive MACD histogram and the MACD line crossing above the signal line suggest short-term bullish momentum, though overall sentiment remains uncertain as the MACD still lies below zero, highlighting the need for a stronger upward trend. A failure to close above $1,725 could prompt bearish movements towards the next support level of $1,600.
