Ethereum (ETH) Price: Trading Range Narrows Between $1,775 and $1,850

TLDR

Table of Contents

ETH consolidating between $1,775-$1,850 in a symmetrical triangle formation
On-chain data shows long-term holders increased positions by 22% since March
Derivatives markets show bullish sentiment with 2:1 long-to-short ratio
Trading volume increasing with options activity up 75% ahead of May 7
Pectra upgrade will expand validator staking limits and improve throughput

Ethereum continues to trade in a narrow range around the $1,800 level as market participants await a decisive move. The second-largest cryptocurrency by market cap has formed a symmetrical triangle pattern on the charts, suggesting a period of indecision that typically precedes a strong directional move.

The price currently hovers near $1,806, caught between key support at $1,775-$1,785 and resistance at $1,845-$1,850.

This consolidation follows a series of lower highs since Ethereum reached nearly $1,910 in April. The narrowing price range has created a compression zone that analysts expect will soon resolve in a breakout.

Technical indicators remain neutral, with the RSI reading 54.63 – neither overbought nor oversold. This balanced position suggests traders are waiting for confirmation before committing to either direction.

Smart Money Makes Its Move

While retail traders appear cautious, large holders have been quietly accumulating. Data from CryptoQuant reveals a striking trend: long-term ETH holders increased their positions from 15.53 million ETH to 19.03 million ETH between March 10 and May 3.

This 22.54% increase in holdings came during a period when ETH traded below many of these wallets’ entry prices.

Rather than selling at a loss, these addresses continued to add positions, effectively lowering their average cost basis from approximately $2,026 to $1,980.

This behavior suggests strong conviction from investors with longer time horizons. These addresses, which typically hold ETH for more than 155 days, have maintained consistent accumulation despite ETH’s correction from its December 2024 high of $4,107.

On the technical front, Ethereum’s price has entered a high-tension zone. The Bollinger Bands have contracted sharply, often a precursor to expanded volatility.

The convergence of multiple EMAs (Exponential Moving Averages) between $1,779 and $1,818 has created a dense support-resistance cluster that will likely determine the next major move.

Derivatives Point North

The derivatives market offers valuable insights into trader sentiment. Total ETH trading volume has increased 26.51% to $46.3 billion, while open interest rose slightly to $21.9 billion.

Perhaps most telling is the surge in options trading, with volume jumping nearly 75% to $357.69 million. This dramatic increase indicates that traders are positioning for an anticipated price move.

The long-to-short ratio reveals a decidedly bullish bias. On Binance, this ratio stands at 2.24, while OKX shows 2.04, meaning bulls outnumber bears by more than 2-to-1 on major exchanges.

Among top traders on Binance, the ratio climbs even higher to 2.76, suggesting stronger bullish sentiment among more sophisticated market participants.

Recent liquidation data adds another piece to the puzzle. The market saw $40.67 million in liquidations over the past 24 hours, with $8.10 million being short positions.

While long liquidations were higher overall, the increasing frequency of short liquidations across multiple timeframes hints at building upward pressure.

Chart analysts have identified several key levels to watch. The $1,775-$1,785 zone represents critical support, coinciding with both the 200 EMA and the lower boundary of the symmetrical triangle.

A break below this area could trigger a slide toward $1,720-$1,740, with deeper support around $1,680 if selling accelerates.

On the upside, clearing the $1,845-$1,850 resistance zone could open the path to $1,910 and potentially $1,950, where supply from the early April distribution remains concentrated.

Upgrade Catalyst Approaches

Market attention is increasingly focused on Ethereum’s upcoming network upgrade. The Pectra upgrade, scheduled for May 7, will implement several changes to the network.

The most notable change will increase the validator staking limit from 32 ETH to 2,048 ETH. This modification could allow for more concentrated staking by larger holders.

Additionally, the upgrade will increase the number of data blobs per block, potentially improving network throughput and efficiency for users.

This technical upgrade comes as Ethereum continues to expand its utility beyond speculative trading. One analyst compared the current opportunity to “buying BTC at $4,000,” citing Ethereum’s growing use in real-world asset tokenization.

The Keltner channel on the 4-hour timeframe has tightened between $1,768 and $1,867, with price action aligned with the middle line. This balance of momentum further confirms the standoff between buyers and sellers.

The MACD indicator remains below the zero line but has moved sideways in recent days. This suggests that while selling pressure has decreased, no bullish cross has yet emerged to trigger renewed confidence.

For traders watching the immediate future, the next 24 hours may bring increased volatility as Ethereum approaches the apex of its triangle pattern.

A daily close above $1,850 could trigger a rapid move toward $1,910, while rejection risks a slide down to $1,775 and potentially $1,740 in the near term.

The combination of whale accumulation, neutral technical indicators, bullish derivatives positioning, and the upcoming protocol upgrade suggests Ethereum may soon break out of its current range-bound pattern.

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