Ethereum (ETH) Price: Is $2,000 in Sight Following Institutional Buying Spree?
TLDR
Ethereum price has been consolidating above $1,700 after a recent surge that reached $1,834
US spot Ethereum ETFs recorded their highest net inflows since February, totaling $38.8 million
Technical analysis shows a bullish trend line forming with support at $1,780
Ethereum faces immediate resistance at $1,820 and needs to break above this level to continue its upward movement
The upcoming Pectra upgrade on May 7 is expected to enhance network efficiency with wallet recovery options and other improvements
Ethereum (ETH) is currently trading above the $1,700 mark, showing signs of stability following a recent surge that saw prices reach as high as $1,834. Despite experiencing a slight dip of over 1.3% in the past 24 hours, the second-largest cryptocurrency appears to be in a consolidation phase that could set the stage for its next major move.
The price action comes as US spot Ethereum ETFs recorded their highest net inflows since February, suggesting renewed institutional interest in the asset. With a total of $38.8 million entering these investment vehicles on Wednesday, the market is seeing the first net inflow since April 4.
Leading this institutional push were Fidelity’s FESH and Bitwise’s ETHW, adding $32.7 million and $6.1 million respectively to the total figure. This injection of funds comes at a critical time for Ethereum, whose market dominance has recently fallen below 7%.
Technical Indicators Point to Potential Breakout
From a technical standpoint, Ethereum has established support above the $1,720 level and the 100-hourly Simple Moving Average. A connecting bullish trend line is forming with support at $1,780 on the hourly chart of ETH/USD.
Source: TradingView
The cryptocurrency started its recent rally by breaking above the $1,750 resistance zone and climbing past $1,800 briefly. After reaching the high of $1,834, ETH entered its current consolidation phase, with only a minor retracement to the 23.6% Fibonacci level of the upward move from the $1,565 swing low.
On the upside, ETH is facing resistance near the $1,820 level. A successful break above this resistance could open the path toward $1,840, followed by $1,880. Beyond that, further resistance lies at $1,920, and clearing this level might push Ethereum toward the psychologically important $2,000 mark.
#Ethereum $ETH is breaking out toward $1,850! pic.twitter.com/PwMT4Ac0h1
— Ali (@ali_charts) April 22, 2025
For downside protection, initial support rests at $1,780, with major support established at $1,740. A break below could test the $1,700 level or the 50% Fibonacci retracement level of the recent upward move.
The Relative Strength Index (RSI) is currently above the 50 zone, suggesting bullish momentum, while the MACD shows decreasing momentum in the bullish territory.
ETH/BTC Pair Shows Recovery Signs
Against Bitcoin, Ethereum has shown signs of recovery, rebounding 10.42% from record lows. The ETH/BTC pair, which dropped to as low as 0.0175 BTC, is now trading around 0.019 BTC.
Technical indicators suggest that ETH/BTC may be reaching a bottoming phase, with the daily RSI establishing higher lows while prices were setting lower lows—a classic bullish divergence pattern. The last time such a scenario existed was in November 2024, which led to a 24% bounce in the pair.
On shorter timeframes, ETH/BTC has broken out of a descending triangle pattern with increased volume, possibly signaling a short-term bullish reversal. The pair is now challenging its 200-period EMA at 0.01935, with potential upside targets near 0.02051 based on technical projections.
Upcoming Pectra Upgrade May Boost Price Action
Beyond market dynamics, Ethereum is preparing for its Pectra upgrade scheduled for May 7. This significant 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 are expected to increase network efficiency and potentially attract more users to the Ethereum ecosystem, providing additional support for ETH’s price action in the coming weeks.
On-chain data reveals mixed signals, as spot investors might be booking gains from the recent price rise despite positive institutional inflows. Exchange net inflows have increased above $150 million over the past two days, according to Coinglass data.
The market has also experienced notable liquidations, with $81.82 million in ETH futures positions liquidated during the past 24 hours. Of this total, $30.72 million were long positions and $51.11 million came from shorts, indicating volatile trading conditions.
For long-term projections, some analysts maintain a cautiously optimistic view on Ethereum. Technical studies from TradingView indicate that Ethereum might be nearing a strong support level around $1,629, which has triggered positive reversals in the past.
If this support holds firm, ETH could target multiple key levels on its path to potential new highs, including $2,506 (aligned with a March resistance zone), $3,708 (near the January fair value gap), and potentially beyond $4,500 by the end of 2025.
For now, ETH remains in its consolidation phase with immediate resistance at $1,820 and support at $1,740. Whether it continues its upward journey or enters another corrective phase will largely depend on its ability to clear the $1,840 resistance level in the near term.
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Filed under: News - @ April 24, 2025 8:30 am