This rebound seems more like a slow movement than a rocket launch.
Ethereum shows signs of recovery after its recent decline, but don't expect victory soon.
Momentum volatility suggests that the bulls may just be starting to prepare.
There is no doubt that Ethereum [ETH] shows signs of recovery after dropping below $1400. But let's not confuse this "comfortable rise" with a definitive trend reversal just yet.
According to Binance Crypto, thanks to some quiet accumulations, Ethereum has returned from the brink. However, the lack of a strong push from the supply side means that the risk of capitulation is not entirely over. In short: Ethereum is not dead, but it's also not ready to launch strongly.
However, early signs of recovery are starting to appear. The optimists may not have started moving yet, but they are certainly on high alert.
The optimists may be gearing up for a launch.
Looking at the monthly and weekly price snapshots, suddenly, this theory becomes clear. While Ethereum posted losses this month, Bitcoin [BTC] achieved a strong increase of 13%.
But with focus, the story turns. On the weekly chart, Ethereum outperforms, achieving double the gains compared to Bitcoin.
This indicates a return of capital to Ethereum, especially as Bitcoin approaches a key supply area at $96,000 - where resistance may limit any further upside.
Ethereum vs Bitcoin
Source: CoinMarketCap
Additionally, the Relative Strength Index (RSI) on the daily chart for the ETH/BTC pair is trending upward after a prolonged period of overselling throughout April, indicating a potential shift in momentum.
These technical indicators support AMBCrypto's hypothesis.
With large amounts accumulating from whales, it seems increasingly likely that Ethereum will break the $1900 resistance level day by day.
Gradual recovery for Ethereum
Bullish expectations for Ethereum received a strong boost. Data from Glassnode showed a sharp increase in the number of early buyers, indicating that new wallets are acquiring Ethereum for the first time since February.
Furthermore, momentum buyers - who are short-term traders active during uptrends - are ramping up their activity this week. When these two groups collaborate, it often precedes a structural reversal.
Ethereum
Source: Glassnode
But let's not get ahead of ourselves - caution still prevails. As AMBCrypto pointed out, Ethereum's inability to recover strongly means the risk of capitulation remains.
Until new buyers step in at the critical $1900 level, breaking this resistance is not an easy task.
So, while chain data and capital flow suggest a potential rise toward $1900, selling pressure is likely to keep this level in check.
Stay alert for trading volume indicators around $1900 - this could be the turning point for Ethereum's next big move.