TLDR
- Ethereum is holding steady around the $1,800 level after recent price correction
- Technical indicators suggest ETH is undervalued following a 45% decline in Q1 2025
- Institutional interest is growing with record ETH ETF inflows of $151.7 million in the week ending April 25
- On-chain metrics show strong long-term holder activity despite recent price drops
- Price analysis points to a potential target of $2,100 if ETH breaks above the $1,850 resistance
Ethereum price has been showing resilience around the $1,800 level in recent trading sessions. After a correction from the $1,850 zone, ETH found support near $1,780 and appears to be consolidating for its next move. Market watchers are now eyeing the possibility of a breakout that could propel ETH toward the $2,000 mark.
The second-largest cryptocurrency started a downside correction after reaching $1,842, but bulls remained active near the $1,780 level.
This price level coincides with the 61.8% Fibonacci retracement level of the upward move from the $1,746 swing low to the $1,842 high.
ETH is currently trading above $1,780 and the 100-hourly Simple Moving Average, suggesting underlying strength in the market.
On the upside, Ethereum faces resistance near $1,810, with another key barrier at $1,820.
A short-term contracting triangle is forming with resistance at $1,810 on the hourly chart of ETH/USD.
Institutional Confidence Growing
One of the most compelling bullish signals for Ethereum is the growing institutional demand.
Spot Ethereum exchange-traded funds (ETFs) recorded inflows of $151.7 million in the week ending April 25, the largest since February 2025.
This was followed by additional net inflows of $64.1 million on April 28, bringing total inflows for Ethereum investment products to $183 million last week.
This surge in institutional interest halted an eight-week streak of outflows, suggesting a shift in market sentiment.
James Butterfill, Head of Research at Coin Shares, connected this trend to broader economic concerns, noting that investors may be turning to digital assets as an emerging safe haven amid corporate earnings worries and dollar weakness.
The demand for Ethereum ETFs mirrors the strong performance of BlackRock’s IBIT Bitcoin ETF, which recently recorded a single-day flow of $970.1 million.
Technical Analysis Points to Potential Upside
The hourly chart for ETH/USD shows that the MACD is gaining momentum in the bullish zone, while the RSI is currently above the 50 level, indicating positive market sentiment.
If Ethereum breaks above the $1,850 resistance, it could potentially target the $1,920 level.
Further upside beyond this point might push ETH toward the psychologically important $2,000 threshold.
On the four-hour timeframe, Ethereum has formed a bull flag pattern.
Ethereum (yes Ethereum) looking bullish here…
A confirmed breakout of the bull flag could send $ETH to $2100 🚀 pic.twitter.com/n8FPpfRxSH
— Trader Edge (@Pro_Trader_Edge) April 29, 2025
A candlestick close above the upper boundary of the flag at $1,800 could trigger an upward surge with a target around $2,100, representing a potential 15% gain from current levels.
The market mood has shifted dramatically over the past two weeks, with the Fear and Greed Index moving from a record-low of 15 to 53, indicating a neutral stance among investors despite economic headwinds.
Based on volume profile analysis, the critical resistance level to watch is $1,800.
If bulls can secure a position above $1,900 and maintain momentum, ETH could quickly rise toward $2,100.
Data from the futures market adds to the positive outlook, showing that traders are closing significant numbers of short positions as Ethereum’s price climbs.
Despite a modest 2% increase in ETH price over the past 24 hours, open interest in Ethereum futures declined by $273 million, suggesting short traders are closing positions rather than engaging in covering actions.
Should ETH break above the $1,850 resistance, this reduction in short interest could trigger a short squeeze and accelerate a rally beyond $2,000 in the coming days.
However, caution is warranted as ETH faces several hurdles on its path higher.
If Ethereum fails to clear the $1,850 resistance, it could start a fresh decline.
Initial support lies near the $1,780 level, with major support at $1,750.
A break below $1,750 might push the price toward the $1,620 level or even $1,600 in the near term.
The foundation for Ethereum’s ecosystem remains strong, with the blockchain maintaining its position as the most widely used layer-1 network with over $51.8 billion in total value locked (TVL).
This TVL has increased by approximately 16% over the past seven days, with protocols like Aave, Lido, EigenLayer, and Ether.fi all seeing double-digit growth.
The stablecoin balance on the network has been steadily increasing throughout the year despite the market downturn, rising from $111 billion to $124 billion.
Layer-2 engagement figures are equally impressive, with 13.6 million active addresses interacting with one or two layer-2 networks in the Ethereum ecosystem.
The Ethereum Foundation recently announced organizational changes, with Hsiao-Wei Wang and Tomasz Stańczak appointed as new co-executive directors starting April 28.
The foundation will focus on scaling the Ethereum layer 1, implementing blobs at the layer 2 level, and improving user experience over the next 12 months.
If the current momentum continues to build, analysts see Ethereum potentially testing several resistance levels on its journey higher, with short-term targets at $2,101, medium-term goals at $2,300, $2,500, and $2,800, and long-term targets at $3,000, $4,000, and possibly $4,400.
The key to maintaining this positive outlook will be holding above the $1,800 level, with a clear break above $2,000 validating the bullish view and potentially opening the path for Ethereum’s advance toward $3,000 in the coming months.
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