The price trend of Ethereum (ETH) is uncertain, and it is currently difficult to determine whether it will continue to 'wash out' or when it will 'rally'. Here is a comprehensive analysis:
Technical Analysis
• Key Resistance and Support: $1800 is an important technical level. If ETH can effectively hold above $1800, it is likely to test the $1850–$1880 range in the short term; however, if it falls below the $1790 support, it may trigger a new round of corrections.
• Bull Flag Pattern: From the 4-hour chart, ETH formed a bull flag pattern over the past week, with the 4-hour candlestick closing above the flag's upper boundary at $1800 on April 29, indicating the beginning of an upward trend, targeting $2100.
• RSI Indicator: Currently, ETH's RSI indicator is in the positive zone at 60, indicating that market conditions are still favorable for an upward movement.
Market Sentiment and Capital Flows
• Institutional Demand: The inflow of funds into Ethereum ETFs has significantly increased, with total net inflows reaching $64.1 million on April 28, and a total inflow of $151.7 million over the week ending April 25, marking the highest level since February 2025, indicating strong institutional demand for ETH.
• Market sentiment: Despite bullish signals, market sentiment remains cautious. Some traders and analysts believe that ETH faces high trading volume rejection at the $1800 level and may retrace to test the support level around $1600.
Macroeconomic and Market Environment
• Macroeconomic Impact: The global macroeconomic environment has a significant impact on the cryptocurrency market. For example, interest rate expectations and geopolitical risks may indirectly affect ETH prices.
• Overall Market Trend: The performance of other cryptocurrencies like Bitcoin will also affect ETH. If the overall market sentiment is optimistic and Bitcoin continues to rise, it may drive ETH upwards.
Future Trend Forecast
• Short-term trend: ETH has been oscillating around $1800 for some time. If it can effectively break through the $1800 resistance level, it is likely to usher in an upward trend; however, if it continues to oscillate in this range or even falls below $1790, it may continue to adjust.
• Long-term trend: As the second-largest cryptocurrency in the world, Ethereum's long-term prospects remain favored by investors. With the continuous expansion of the Ethereum ecosystem and the promotion of Layer 2 solutions, ETH may welcome a new round of upward trends in the future.
Investing involves risks, and the cryptocurrency market is highly volatile. Investors are advised to approach with caution and implement proper risk control.
