Ethereum trades at $2,378, down 5% over the past 24 hours after reaching $2,693 a week.
Even if it declines, Ethereum (ETH) has grown by more than 35% in the past month, showing strength amid the recent revival of the crypto market. The 24-hour volume has increased by 128.6% to $29.6 billion, with trading activity increasing, indicating new interest from both retail and institutional investors.
I draw a similar picture for derivative data. Coinglass data shows a 135% spike in trading volume. Interestingly, open interest in ETH futures has declined by 5.53% over the same period, suggesting that new momentum will begin to build under while short-term traders close their jobs.
From a technical standpoint, Ethereum has returned to the middle of the Bollinger Band after a recent sale. The momentum was slightly negative, and the relative strength index cooled from the excess zone to 59.6.
Short-term signals such as EMA and SMA for 10 days are flashing red, but Ethereum is still above the 20, 30 and 50 day moving average. At this point, most momentum indicators are neutral. Furthermore, MACD remains positive, suggesting that there may be opportunities for fresh uptrends if assets find solid support within their current range.
Analysts are generally optimistic, but are still split with a recent outlook. In a post on May 17th in X, Crypto’s Titan suggests that Ethereum still has “more gas in the tank.” He said the rally could be extended over the next few weeks.
Conversely, Crypto Patel considers current movements as a healthy correction. He points to Ethereum’s denial at the $2,500 level. This is an area known as the fair value gap, where assets are moving too quickly, leaving behind unfulfilled orders. These gaps tend to be reexamined by the market to confirm support or resistance.
Patel believes ETH can immerse itself in the $1,930 to $2,100 range. The order block, which frequently serves as a strong support zone, is a collection of substantial buy or sell orders created by an institution or whale. He argues that if the next leg holds demand here, ETH can be brought closer to the $4,000-5,000 range.
Ethereum’s outlook remains cautiously optimistic, whether it finds support at the current level or decreases before the next meeting.
