- Buy Signal Emerges as ETH Holds $1,600 Support Zone
- Whales Accumulate ETH Amid Bullish Technical Signs
- Buterin’s Proposal Aims to Boost ETH Scalability
Ethereum (ETH) is entering a crucial phase as the TD Sequential indicator has flashed a buy signal. This development comes after the asset recently retested its key support level near $1,600. The signal suggests a possible momentum reversal, similar to what was observed during Ethereum’s 2020 bullish run.
Technical Indicators Point Toward Potential Upward Movement
On April 20, the Relative Strength Index (RSI) for ETH dropped to 29, placing it in oversold territory. Oversold RSI conditions have previously preceded market reversals, including in May 2020.
Later in the day, the hourly Moving Average Convergence Divergence (MACD) crossed into bullish territory, further supporting expectations of an upward trend.TradingView data showed a 30% increase in daily ETH trading volume to 1.56 million ETH, indicating increased market participation.
At the same time, the Stochastic Oscillator was recorded at 15, confirming the oversold condition. The Bollinger Bands on the hourly chart also widened, showing that price volatility is returning to the market.
Whale Accumulation and Developer Proposal Support Market Sentiment
Large holders have increased their Ethereum positions in recent weeks. According to Lookonchain, one wallet withdrew over 3,800 ETH from centralized exchanges since early April. Such movements often reflect confidence in long-term price growth. As of April 20, ETH was trading at $2,800, still above its strong support at $1,600.
Ethereum’s co-founder, Vitalik Buterin, proposed replacing the current Ethereum Virtual Machine (EVM) with the RISC-V instruction set. This change aims to improve Ethereum’s execution efficiency and scalability. The suggested upgrade is designed to increase network performance by simplifying zero-knowledge proofs and enhancing data availability.
Network activity has remained consistent despite lower transaction fees. Etherscan reported over 1.1 million daily transactions, while average network fees dropped to $0.16. Though active addresses fell 10% in the past week, on-chain data still indicates continued interest in Ethereum’s network and ecosystem.
