Key Notes
- Ethereum recorded a sharp fall to $1,736 on April 30.
- The price drop triggered increased liquidations, reaching $67 million.
- ETH will likely face another correction before gaining bullish momentum.
Ethereum
ETH
$1 815
24h volatility:
1.0%
Market cap:
$219.22 B
Vol. 24h:
$13.73 B
has been struggling to break above the psychological $2,000 mark over the past two months. The leading altcoin even dropped below the $1,400 mark on April 9.
On April 22, Ethereum gained upward momentum, rising from $1,550 to $1,800, as the optimism around Bitcoin
BTC
$95 121
24h volatility:
0.5%
Market cap:
$1.89 T
Vol. 24h:
$27.07 B
pushed the broader crypto market toward the $3 trillion mark.
However, the consolidation came to an end on April 30. Ethereum dropped to a local low of $1,736 in less than two hours.
This brought increased liquidations for Ethereum, surpassing Bitcoin’s $64 million and reaching $67 million — $48 million longs and $19 million shorts, according to data from CoinGlass. Long liquidations usually trigger panic among short-term traders.
Consequently, a head and shoulders pattern has been created on the one-hour ETH price chart.
ETH 1H chart – May 1 | Source: TradingView
Ethereum will likely see a correction to around $1,770 before gaining bullish momentum. However, a price fall below $1,760 could trigger further selloff to potentially push the price to the $1,700 mark.
On the other hand, Ethereum could break the head and shoulders pattern if the price pushes above the $1,830 resistance.
At this point, Ethereum’s relative strength index (RSI) is hovering at 54, showing a neutral position. This puts ETH in a low-volatility position.
In addition to the technical indicators, Ethereum’s price movements would also depend on the broader market sentiment, macroeconomic conditions and whale accumulation.
A key catalyst for the leading altcoin could be the approval of ETH ETF staking in the US. Grayscale has already held a meeting with the US Securities and Exchange Commission to get the green light for the ETHE fund’s staking.
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Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Wahid has been analyzing and reporting on the latest trends in the decentralized ecosystem since 2019. He has over 4,000 articles to his name and his work has been featured on some of the leading outlets including Yahoo Finance, Investing.com, Cointelegraph, and Benzinga. Other than reporting, Wahid likes to connect the dots between DeFi and macro on his newsletter, On-chain Monk.
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