Ethereum (ETH) Price: Overcomes $1,750 Resistance With Jump in Network Activity

TLDR

Table of Contents

Ethereum has broken through the $1,750 barrier and reached as high as $1,834 before entering consolidation
US-based Ethereum ETFs recorded $38.8 million in net inflows, led by Fidelity and Bitwise
On-chain data shows a 10% increase in active Ethereum addresses over a 48-hour period
Technical indicators suggest a potential continuation of the uptrend if $1,820 resistance is cleared
The Pectra network upgrade scheduled for May 7 could provide additional bullish momentum

Ethereum has finally broken out of its weeks-long trading range, surging above the critical $1,750 resistance level as both on-chain metrics and institutional interest show signs of improvement. The second-largest cryptocurrency by market cap reached a local high of $1,834 before entering a consolidation phase.

The price movement comes after ETH spent much of April trading sideways, repeatedly testing but failing to break above the $1,650 level. This latest price action represents the most decisive move in weeks.

Ethereum is now trading comfortably above both the 100-hourly Simple Moving Average and key support zones. Market watchers have noted the formation of a bullish trend line providing support around the $1,780 mark.

The breakout coincides with a welcome return of institutional capital to Ethereum investment products. US spot ETH ETFs recorded inflows totaling $38.8 million on Wednesday, marking their best day since early February.

This influx of capital represents a potential shift in sentiment after almost two months of continuous outflows. Since February 20, ETH ETFs had experienced nearly $1 billion in cumulative withdrawals.

On-Chain Metrics Signal Growing User Engagement

Behind the price movement, Ethereum’s network metrics are showing encouraging signs of increased usage. Active Ethereum addresses jumped by approximately 10% between April 20 and April 22, increasing from 306,000 to over 336,000.

This uptick in network participation often precedes sustained price movements, as it indicates growing user engagement with the Ethereum blockchain. Rising address activity combined with price increases typically suggests organic demand rather than just speculative trading.

Interestingly, despite the growing network activity, transaction fees on Ethereum remain surprisingly low. Average fees are hovering around $0.31, suggesting that while more addresses are becoming active, the network still has plenty of capacity.

The low fee environment creates an attractive opportunity for users to interact with decentralized applications on Ethereum without facing the high gas costs that have plagued the network during past bull runs.

Exchange flow data reveals a mixed picture. While institutional money is entering through ETFs, on-chain analysis shows net inflows to exchanges exceeding $150 million over the past two days, suggesting some spot holders may be taking profits.

Technical Picture Suggests Potential for Further Gains

From a technical analysis perspective, Ethereum’s outlook appears improved after breaking free from a descending channel pattern that had confined price action since December.

ETH is now facing resistance near $1,820, with the next major hurdle at $1,840. A successful break above these levels could open the path toward the psychologically important $1,880 and $1,920 zones, with $2,000 representing a major target that would confirm bullish sentiment.

The Relative Strength Index (RSI) sits above the neutral 50 level, indicating moderate bullish momentum without entering overbought territory. Meanwhile, the MACD, while still in the positive zone, shows decreasing bullish momentum, suggesting the consolidation phase may continue before the next significant move.

If buying pressure fades, Ethereum has established support at $1,780, with stronger support waiting at $1,740. A drop below these levels would raise concerns about the sustainability of the recent rally.

Futures market data reveals significant liquidations during the price surge, with $81.82 million worth of positions closed in the past 24 hours. Short positions accounted for the majority of these liquidations at $51.11 million, compared to $30.72 million in long positions.

Upcoming Pectra Upgrade May Provide Additional Catalyst

Looking beyond market dynamics, Ethereum’s fundamental outlook could receive a boost from the upcoming Pectra upgrade, scheduled for implementation on May 7.

This network enhancement will introduce several important improvements to the Ethereum mainnet, including new wallet recovery options, transaction batching capabilities, expanded Blobspace, and an increase in the staking limit to 2,048 ETH.

These technical improvements aim to enhance network efficiency and user experience, potentially attracting more activity to the Ethereum ecosystem. Historical data shows that major network upgrades often correlate with increased price action, as they demonstrate ongoing development and address user pain points.

The Pectra upgrade comes at a time when Ethereum’s market dominance has fallen below 7%, highlighting the need for continued innovation to maintain its position against competing Layer 1 blockchains.

Longer-term projections from market analysts remain cautiously optimistic. Technical studies suggest Ethereum may be establishing a solid support base around $1,629, which could serve as a foundation for future gains if the current momentum continues.

Some analysts have outlined potential targets at $2,506, aligned with a March bearish order block, and $3,708, near the January fair value gap, with more optimistic projections suggesting ETH could approach all-time highs by late 2025.

For now, Ethereum’s immediate outlook hinges on its ability to clear the $1,840 resistance. Success here would confirm the bullish reversal pattern, while failure could lead to another round of consolidation or even a retest of lower support levels.

With improving on-chain metrics, renewed institutional interest, and technical developments on the horizon, Ethereum shows the first real signs of recovery after months of underwhelming performance compared to other major cryptocurrencies.

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