Ethereum (ETH) price has mimicked the larger market trend struggling to rise above key resistance levels. Despite some occasional price pumps ETH and its struggle to place itself above $2000 continue.
In May beginning during the FOMC meeting, the US Fed announced a rate increase of 25 basis points. While the interest rate hike saw some bullish push in the cryptocurrency market, it failed to generate high price gains for both BTC and ETH.
At the time of writing, Bitcoin and Ethereum were both trading in red as price saw short term losses. Ethereum price traded at $1,807.71 showing no losses or gains. This leads to a question of whether Ethereum in particular, can hold the $1,800 zone off against the bears, and hit the $2,000 zone again?
Let us find out..
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Ethereum Price Performance
CoinMarketCap data shows that Ethereum is above the crucial $1,800 resistance but was trading at just a hair length above $1,800 at the time of writing.
Ethereum price was slightly bearish, after having lost the minor gains it managed to make after the FED announcement.
For Ethereum in particular, In April, the $1800 mark served as strong support for the cryptocurrency.
Bulls defended this zone in late April and did it again on May 2, and so far, the price of the cryptocurrency has remained above the 50-EMA (purple line) and 200-EMA (red line). This means that ETH is still bullish, and may have some hope of moving further upwards.
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The bottom line of all of this is that ETH is currently bullish and still has a good chance of rallying further upwards.
The bears also don’t stand much of a chance of pushing the cryptocurrency lower, if it stays above the 200 and 50-day EMAs.
The important question is whether the cryptocurrency can indeed hit the $2,000 zone soon.
The Surge In ETH’s Deposit Contract Value
After the announcement of the results of the FOMC meeting this week, Ethereum’s price wasn’t the only metric that experienced an uptick.
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In the short hours following the FED rate rise announcement, ETH and the majority of other popular cryptocurrencies witnessed some bullish momentum. The spike in the value of Ethereum’s deposit contracts on May 4 was also one of the highlights of this week.
Glassnode alerts, via a tweet, mentioned that the total Value in the ETH 2.0’s Deposit Contract had reached an ATH of 19,279,936 ETH in May beginning itself.
📈 #Ethereum $ETH Total Value in the ETH 2.0 Deposit Contract just reached an ATH of 19,279,936 ETH
View metric:https://t.co/SzbMPqvhlb pic.twitter.com/PjU1Xwlmpb
— glassnode alerts (@glassnodealerts) May 4, 2023
It makes one wonder whether the bullish metrics on Ethereum will serve as the stepping stone that pushes the cryptocurrency into a retest and possible breakout from the $2,000 zone.
The on-chain analysis firm, Santiment, also mentioned in a tweet on Friday, that recently, Ethereum’s active deposits have reached an 8-month high.
😮 #Ethereum's active deposits just hit an 8-month high. As we research the most likely cause, we can currently state that this likely will foreshadow upcoming increased $ETH volatility, similar to the result of spikes during the #merge & #FTX collapse. https://t.co/aBeHQudM52 pic.twitter.com/oHeypfUPvJ
— Santiment (@santimentfeed) May 5, 2023
Santiment says that it is now safe to say that this might foreshadow heightened $ETH volatility, comparable to the results of surges during the merge and the FTX collapse, as we continue to investigate the most likely cause.
Needless to say, this coming volatility may just be the catalyst that pushes Ethereum further upwards into a retest of the $2,000 zone.
Ethereum In The Charts
As the ETH market seems to be stabilizing, Ethereum’s charts reflect a neutral trend for the day.
The token is presently trading at about $1,800, just managing to keep bearish pressure away from the ETH market.
The closest resistance, according to the chart above, is at $1,931 (red line). And if the bulls initiate a break out of this zone, ETH may soon aim for the $2,000 region.
Conversely, the $1,800 zone is still a major and crucial support.
A selloff below the $1,852 support level might cause a price slump on Ethereum, in a bearish wave that takes the cryptocurrency as low as $1,670 or further below.
In conclusion, Ethereum’s price analysis reveals that the ETH market is bullish. Volume has increased significantly over the last 24 hours, and this might be a good thing if ETH will have any chance of breaking through the $1,931 resistance level. If a breakthrough in this zone does occur, bulls will become more confident and will be able to push the cryptocurrency further upwards.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.