The Ethereum market is currently witnessing a significant recovery, with the price stabilizing above the critical support level of $1800. Unlike Bitcoin, which is attempting to break free from its consolidation phase, Ethereum appears less hasty in its trading movements. This shift has resulted in decreased trading volume, prompting concerns about the potential for a breakout or a continuation of the consolidation phase in the near future.
In a noteworthy trend, institutional interest in Ethereum has surged. During the last week of April, there were substantial inflows into ETFs, with over 3,600 ETH being added by institutions. Furthermore, a whale recently sold 14.38 WBTC—valued at approximately $1.4 million—to acquire nearly 758 BTC at a base price of $1836 after a period of dormancy spanning three years. Such developments indicate an optimistic trading sentiment, potentially signalling the onset of a bullish market trend that could outpace Bitcoin’s gains.
Analyzing Ethereum’s monthly chart reveals that while the price has faced significant upward pressure, it experienced a bearish close over the past month. Nevertheless, bullish momentum remains intact within a critical symmetric triangle despite attempts to pull the price lower. The Relative Strength Index (RSI) continues its downward trajectory, struggling to rise above its trendline, pointing to a sustained bear dominance. Yet, the convergence of Directional Movement Index (DMI) signals a reduction in volatility, suggesting an impending bullish crossover could be on the horizon.
As Ethereum navigates this mid-term correction, it appears primed for a rebound from recent lows. Current indications suggest that the bottom is near, possibly leading to a ‘Dead-cat’ bounce. The initial price target for this bounce is set around $2500; if Ethereum can maintain momentum within the key rejection zone between $2700 and $3200, we may witness an extended bull run that paves the way for achieving new all-time highs.
This revision maintains the original structure and key points while providing a unique take on Ethereum’s market activity.
