BlackRock's Purchase of 10,897 ETH worth $19.65M Draws Market Focus

Ethereum (ETH) is drawing market focus again. This comes after BlackRock purchased 10,897 ETH, valued at approximately $19.65 million, on Coinbase.

Key Insights:

* As the crypto market navigates a period of consolidation, Ethereum (ETH) is drawing attention again, especially after BlackRock purchased 10,897 ETH, valued at approximately $19.65 million, on Coinbase.

* The purchase occurred while Ethereum’s price hovered at $1,805.16, showing a 1.14% increase in the past 24 hours.

* While the market remains cautious, analysts are keeping a close eye on ETH’s current levels, which are set against the backdrop of its valuation approaching historical lows and the upcoming Pectra protocol upgrade on May 7.

* A report by Benzinga on Wednesday morning brought attention to BlackRock’s purchase of 10,897 ETH, amounting to nearly $19.65 million, via Coinbase.

* This transaction was shared widely across crypto social media platforms, highlighting the institutional activity in the market.

* The purchase price for the ETH is said to be around $1,805.16, which is an increase of 1.14% in the past 24 hours.

* This large-scale purchase adds to bullish expectations for Ethereum, which has seen sustained interest from major institutions.

* Traders are now awaiting signs of whether this buying pressure will lead to more accumulation or if ETH will consolidate at its current levels.

* Social media reactions indicate growing optimism, although some caution remains due to Ethereum’s struggle to break past resistance zones.

* Analysts will continue to track on-chain metrics and order books for signs of follow-through buying.

* Ethereum price is approaching a strong resistance area near the $1,850 price zone. This level has acted as a barrier multiple times over recent weeks.

* ETH needs to close above this zone with strong volume to confirm a possible breakout.

* Sellers have been active in this region, which has prevented price movement beyond it.

* If ETH can close strong above that resistance (not just wick above), then I’ll be watching for a retest of that zone as new support.

* A continued rejection from this level could open the way for further downside.

* There is a lower support zone around $1,537 that could cushion the price on the downside.

* If Ethereum fails to hold above current levels, then it could revisit that area where buyers have previously stepped in.

* Technical indicators show signs of a potential reversal. A possible double bottom formation is observed between the levels $ 1,537 and $ 1,800.

* This pattern is used where there is an upward momentum of a particular price that is on the pressure of selling, or where the price is increasing and there is interest in buying.

* This level has provided support in previous pullbacks. There is an important support level at around $1,537 as we can see from the chart and that has been held several times.

* The other technical feature is the Supertrend for Ethereum: It currently features a red line above the price level that may act as a resistance level.

* For a trend shift to the upside, we would need the price to cross this line and establish itself above it.

* Traders are also watching the Fibonacci level at $2,045. This level could be difficult to surpass unless there is a rise in buying volume.

* If ETH can maintain a daily close above $1,880, then the potential for a move toward $2,000 becomes stronger.

* On-chain metrics and valuation models show Ethereum price trading at a relatively low value compared to historical norms.

* ETH is at its lowest valuation since several previous bottoms. These points (August ’22, March ’20, January ’19) were all local bottoms that were followed by substantial gains (12 months).

* These conditions usually appear during accumulation phases, where long-term investors tend to buy more.

* This outlook has led some to consider the current price levels as attractive for accumulation in the market.

* The market will also be watching Ethereum’s performance as the network approaches the May 7 Pectra upgrade, which may bring changes to its technical and operational functions.