During the May Day holiday, Ethereum surged to 1850. Can it reach 2000?
On May 1st, ETH shot up to 1859. Although it closed back down around 1841, it still rose nearly 5% in a single day, with trading volume skyrocketing to 900 million USD within 24 hours, indicating that significant funds are at play.
Technical analysis:
- The upper Bollinger Band is pressing down at 1851, with the middle band at 1839 serving as short-term support. If it stabilizes above the upper band, we might see a touch at 1900.
- Moving averages are all in a bullish arrangement, but the RSI is approaching 70, suggesting a possible short-term pullback.
- Key levels: 1820-1830 is a support zone; if it breaks, a retest of 1800 could occur.
- Sell orders account for 84%, while buy orders only make up 15%, indicating that many want to sell at this level, but large orders (like a 53 ETH buy order) are still being filled, suggesting that the big players may not have finished unloading.
- The positive sentiment around Layer 2 and ETFs is still being discussed, but after a substantial rise in the short term, be cautious of profit-taking leading to a sell-off.
Action:
- For short positions, don’t chase the price; wait for a pullback to around 1820 before considering buying.
- For long positions, hold on and don't panic; consider adding to your position below 1800.
Daiyu's advice:
ETH is surging strongly, but there is significant market divergence; don’t get overly excited with every increase. Remember the old saying in the circle: 'Bull markets have more crashes, bear markets have more surges.' May has just begun; whether it can reach 2000 will depend on BTC's performance and the Federal Reserve's monetary policy.
(Only personal opinion, just leisurely during the holiday!)
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