Key Notes: Ethereum (ETH) Struggles to Break Above $2,000 Resistance

Key Notes

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 still in the lower half of the neutral zone, at 54. 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 met with the US Securities and Exchange Commission to discuss the ETHE fund’s staking.