- Ethereum shows a strong monthly reversal, signaling a potential rally toward $2,500–$3,200.
- Bullish flag and breakout on charts suggest upside, but $2,700–$3,200 may act as resistance.
- On-chain data shows rising buying pressure and long-term accumulation by ETH holders.
Ethereum’s price action on the monthly chart suggests a potential end to the recent correction. After taking out the August–October 2023 lows, the asset printed a strong reversal candle and held above the midline of a long-standing macro channel. This structural recovery points to a possible mid-term bounce toward the $2,500–$3,200 range in the coming months.
Technical Structure Points to a Bounce, But Resistance Awaits
According to an analysis prepared by Hardy on X, Ethereum appears to be forming a bullish flag on the lower timeframes. On the monthly chart, the macro trend shows that the price has rebounded after testing and holding the midline of a long-standing ascending channel. This move followed a large reversal candle that occurred after Ethereum briefly broke below its previous cycle low.
Ethereum is currently trading at around $1,848 after a short-term surge. The recent breakout from a falling channel pattern on the daily chart suggests further upside potential. However, the resistance between $2,700 and $3,200 may limit this rally. Hardy notes this area as a potential lower high rejection zone unless the channel is broken decisively to the upside.
The Fibonacci retracement levels mark $2,000 as the next resistance, followed by $2,400 near the 38.2% level. A breakout beyond the 50-day EMA, currently aligning with the $1,850 supply zone, may act as a trigger for this projected bounce.
On-Chain and Derivatives Data Supports Bullish Bias
According to data from CryptoQuant, net taker volume has turned positive since April 23, suggesting growing buying pressure. The 30-day moving average of taker volume stood at $311,406 as of May 1.
This shift may indicate that Ethereum is forming a bottom and attracting buyers again. Meanwhile, long-term holders have continued to accumulate ETH, with over 600,000 tokens added to staking contracts since late March.
According to data observed by Oriole Insights, market sentiment remains bullish, with Ethereum leading trader interest at 82%. The open interest in Ethereum derivatives has also risen by over 3%, reaching $21.60 billion.
