- Ethereum’s OBV drops to key support near 10M, signaling potential volume weakness despite resilient price structure and bullish sentiment.
- Price action holds above $2,250 support with bulls targeting $2,750, even as OBV shows signs of exhaustion after a strong April recovery.
- Despite short-term volume concerns, Ethereum maintains a bullish trend structure supported by breakout patterns and higher lows since March.
Ethereum’s current market structure shows conflicting signals as volume momentum weakens while price action remains relatively resilient. According to IncomeSharks, the On-Balance Volume (OBV) indicator on the daily chart reveals a worrying trend. OBV recently dropped to 10.02 million, testing a key support level near 10 million. This level served as resistance during April, adding significance to the current retest. Although long-term sentiment remains bullish, the analyst warns of potential pain if this support fails.
Source: Income Sharks
The chart spans data from March 5 to May 18, 2025. OBV peaked near 11.1 million in early March before falling to 10.4 million. A sharp drop in early April pushed OBV as low as 9.2 million. However, a strong recovery followed as OBV climbed back to 10.8 million by May 10. That uptrend now appears in jeopardy. OBV sits at a middle support band, and failure to hold could push volume toward the 9.4 million range.
Ethereum Price Action Shows Recovery Despite Decline
Meanwhile, CryptoCaesarTA’s Ethereum/USDT pair highlights encouraging price behavior over a broader timeframe. Ethereum trades at $2,403.71 after shedding 3.77% on the day. The pullback followed a brief rally attempt, with intraday highs reaching $2,513.50. Notably, ETH remains 42% below its December peak near $4,150, but also 50% above the March low around $1,600.
Source: Crypto Caesar
Price action reveals a clear breakout from a descending channel in April. This marked a shift in trend following months of decline. Key formations like Break of Structure (BOS) and Change of Character (CHoCH) signal momentum reversals. The current support sits near $2,250, a zone that previously acted as resistance in late 2024.
Accumulation Zones Remain Intact
Despite short-term selling, Ethereum’s broader structure appears constructive. A potential upside target of $2,750 aligns with visible resistance zones. The $2,250 support remains crucial for maintaining bullish momentum. Moreover, several horizontal support levels sit just below the current price, providing potential downside protection.
Hence, while volume trends suggest caution, price patterns still reflect strength. Investors remain hopeful as long as key OBV and price supports hold. Ethereum may face volatility ahead, but long-term structural trends still lean bullish.
