Is Ethereum about to rebound? Declining trading volume and technical indicators suggest ETH may challenge $26,000!

Despite Ethereum's price having fallen over 40% since the beginning of the year, currently hovering around $1,769, some technical signals and upcoming upgrades hint that a rebound may be on the horizon.

Declining spot trading volume: Is selling pressure easing?

Ethereum's spot trading volume has been continuously declining, and market analysts believe this may have slowed the further decline in prices. With reduced seller activity, market volatility is also decreasing, creating room for a rebound. However, this does not mean the price has bottomed out, but rather may have alleviated selling pressure in the market.

Technical analysis: Oversold signals indicate rebound opportunities

Technical analysis shows that the stochastic RSI indicator has entered the oversold zone, even lower than the levels seen during the market crash at the end of 2022, which may indicate an impending rebound. Based on historical data, Ethereum's target price in May could reach $2,600; while this cannot be guaranteed, traders are closely monitoring this technical signal.

Upcoming upgrade: Can Pectra be a key catalyst?

On May 7, the Ethereum network will undergo the Pectra upgrade, which is expected to improve user experience and reduce transaction costs. However, the market's reaction to this upgrade has been relatively lukewarm, with analysts generally believing it will not be a major driver of price increases. Unlike previous upgrade cycles, Pectra has failed to spark market enthusiasm.

Market sentiment and macroeconomic impacts:

Macroeconomic factors, such as the upcoming Federal Open Market Committee meeting, may also affect market sentiment, causing assets like gold to outperform cryptocurrencies, further influencing Ethereum's price movements.

Conclusion:

Despite cautious market sentiment in the short term, the decline in trading volume and the oversold state of technical indicators may provide opportunities for an Ethereum rebound. After breaking through the key resistance level of $1,800, ETH may experience an upward trend, with a target price potentially reaching $2,600.