Ethereum’s price is on the verge of breaking through the $2,400 resistance level, which has limited its progress throughout the past week.
Summary
- The price of Ethereum is currently testing the $2,400 resistance after a rebound to $2,393, with consistent rejections keeping its value in a narrow range.
- Technical analysis suggests possible upward movement, indicated by an impending bullish MACD crossover and a Supertrend indicator that has remained positive since mid-March.
- ETF inflows totaling $101 million and diminishing exchange reserves (currently at 14.5 million ETH, the lowest since 2016) signal rising demand and decreasing sell pressure.
As reported by crypto.news, the price of Ethereum (ETH) surged by 3.5% to reach $2,393 on May 4, only to be met with resistance at $2,400, stabilizing around $2,370 at the time of writing. Though Ethereum has briefly surpassed the $2,400 mark on two occasions in the past month, it quickly lost momentum and fell back below this threshold.
However, various technical and fundamental indicators suggest that the token may finally break free from its constricted trading range.
Importantly, the daily chart for Ethereum shows that it is nearing a bullish MACD crossover, which is often a precursor to a shift toward upward price action. The last instance of such a crossover led to a nearly 25% increase in Ethereum’s price within a month.
The Supertrend indicator has maintained a positive outlook since mid-March, signaling that the overall market trend remains upward despite recent price fluctuations.
Ethereum’s current price is also near the 61.8% Fibonacci retracement level at $2,381, indicating that bullish traders are actively defending this mid-range area. A decisive breakout above the present resistance could lead to a surge past $2,400, moving toward a critical 38.2% retracement level at $2,772, assuming bullish momentum persists.
In addition to strong technical signals, on-chain data suggests that demand is supportive of a potential upward move. Information from SoSoValue indicates that Ethereum-based ETFs recorded over $100 million in net inflows last Friday, breaking a four-day streak of negative activity that saw $183 million in outflows.
While this is not a definitive indication that institutional investors will fully commit immediately, it reflects a renewed interest in the asset, particularly if more positive flows are observed this week.
Another factor likely benefiting Ethereum’s price is the decrease in ETH held on exchanges. According to CryptoQuant, Ethereum’s exchange reserves have dropped to 14.5 million, marking the lowest figure since mid-2016 and signifying reduced selling pressure on the token.
Disclosure: This article is not investment advice. The information and materials presented here are for educational purposes only.