TLDR
Ethereum price has surged above the $1,750 resistance level and is now consolidating
US spot Ethereum ETFs recorded $38.8 million in inflows, the highest since February
Active Ethereum addresses increased by 10% in 48 hours, rising from 306,000 to over 336,000
Technical indicators suggest ETH is testing key resistance levels with potential targets above $1,800
The upcoming Pectra upgrade on May 7 is expected to enhance network efficiency
Ethereum has started a fresh surge, breaking above the $1,750 resistance level and reaching a high of $1,834. The second-largest cryptocurrency is now consolidating gains while showing signs of potential further upward movement, supported by rising ETF inflows and increased network activity.
ETH is currently trading above $1,720 and the 100-hourly Simple Moving Average. After the recent price spike, Ethereum has entered a consolidation phase, maintaining positions above key support levels.
The price action comes as US spot Ethereum ETFs recorded their highest net inflows since February, totaling $38.8 million on Wednesday. This marks the first net inflow since April 4, suggesting a shift in institutional sentiment after nearly reaching $1 billion in cumulative outflows since February 20.
Fidelity’s FESH and Bitwise’s ETHW led the charge, adding $32.7 million and $6.1 million respectively to the total inflow figure. This fresh institutional interest comes at a pivotal point for Ethereum, whose market dominance had recently dropped below 7%.
Technical Outlook Points to Key Resistance Levels
On the technical front, Ethereum is now testing important resistance levels following rejection at its 50-day Simple Moving Average. The cryptocurrency has been trading in a descending channel pattern since December, with bulls now eyeing a breakout above the upper limit of the channel.
There is a connecting bullish trend line forming with support at $1,780 on the hourly chart of ETH/USD. The price seems to be facing hurdles near the $1,820 level, with the next key resistance near $1,840.
If Ethereum can clear the $1,820 resistance, it might target the $1,880 level. A move above this resistance could potentially send the price toward $1,920 or even $2,000 in the near term.
However, if Ethereum fails to clear the $1,820 resistance, it could start a fresh decline. Initial support on the downside is near the $1,780 level, with major support sitting near $1,740.
On-Chain Activity Shows Rising Interest
On-chain metrics reveal growing interest in Ethereum. Between April 20 and April 22, the number of active Ethereum addresses increased by almost 10%, rising from about 306,000 to over 336,000. This uptick indicates increasing network participation at a time when ETH is beginning to regain bullish momentum.
Although spikes in address activity don’t guarantee upward movement, they can be an early sign of shifting sentiment and frequently indicate growing investor interest, especially when combined with rising price action.
ETH has finally pushed above the $1,650 resistance zone, a level that had acted as a ceiling since mid-April. Following a strong green daily candle breakout, ETH price crossed $1,790, breaking away from the short-term range in which it had been stuck.
Buyers appear to be regaining control for the first time in weeks. ETH is now trading above both the 10-day and 20-day moving averages, suggesting growing strength in the short term.
The Relative Strength Index is now above the 50 zone, pointing to further optimistic momentum. The MACD for ETH/USD is losing momentum in the bullish zone.
On-chain data shows that spot investors might be booking gains from the recent price rise despite the positive institutional inflows. Exchange net inflows have increased above $150 million during the past two days.
The market has also seen $81.82 million in ETH futures liquidations during the past 24 hours. Of this total, $30.72 million were long positions and $51.11 million came from shorts, suggesting erratic trading conditions.
One interesting factor to watch is Ethereum’s transaction fees. The network’s fees remain unusually low, around $0.31 on average, indicating that on-chain demand is still low even though the network is cheap to use.
Pectra Upgrade Could Boost ETH’s Prospects
Apart from market forces, Ethereum is preparing for its Pectra upgrade scheduled for May 7. This important release will introduce several improvements to the Ethereum mainnet, including wallet recovery options, transaction batching capabilities, expansion of Blobspace, and raising the staking limit to 2,048 ETH.
These technical developments might increase network efficiency and attract more users to the Ethereum ecosystem, potentially supporting ETH’s price action in the coming weeks.
Looking ahead, several analysts maintain a somewhat optimistic long-term view on Ethereum. Technical analysis from TradingView indicates that Ethereum might be nearing a strong support level around $1,629, which has triggered notable positive reversals in the past.
Should this support hold, ETH may target multiple key levels on its path to higher prices, with some analysts projecting potential for ETH to reach beyond $4,000 by the end of 2025.
Ethereum is currently in a consolidation phase with immediate resistance at $1,820 and support at $1,740. The ability of the cryptocurrency to clear the $1,840 resistance level will define whether it continues its upward path or enters another phase of corrections.
