Ethereum has retreated to approximately $2,378, marking a nearly 5% decline over the past 24 hours after recently climbing to a weekly high of $2,693.
Despite this pullback, Ethereum (ETH) remains significantly higher for the month, boasting an increase of over 35%. This continued upward momentum indicates renewed investor interest amid the broader recovery currently seen across crypto markets. Over the past day, trading volume surged by 128.6%, hitting approximately $29.6 billion. The heightened activity points toward fresh engagement from both institutional buyers and retail traders.
Data from derivatives markets further highlight this active participation. According to CoinGlass, Ethereum trading volumes jumped by roughly 135%. However, the open interest on ETH futures has simultaneously fallen by 5.53%. This trend may suggest traders are closing short-term positions while the market prepares to establish fresh upward momentum.
From a technical perspective, Ethereum’s recent decline has returned its price closer to the middle line of its Bollinger Bands, indicating a normalization after reaching stretched levels. Additionally, although the RSI has cooled down from previously overbought territory, it remains moderately bullish at 59.6.
Short-term momentum indicators, including the 10-day exponential and simple moving averages, have switched to negative signals. Yet Ethereum still holds above its longer-term moving averages, specifically the 20-day, 30-day, and 50-day lines, which provides additional technical support. Moreover, the MACD remains in positive territory, suggesting the possibility of another uptrend if ETH successfully consolidates around the current area.
Market analysts show mixed short-term outlooks but generally maintain a cautiously optimistic stance. Crypto analyst “Titan of Crypto,” referencing the weekly Stochastic RSI, argues Ethereum has additional room to rally before it approaches extreme overbought levels. The analyst asserted that Ethereum’s recent gains might extend further in the coming weeks.
Conversely, analyst Crypto Patel interprets the recent decline as a healthy technical correction following Ethereum’s rejection at the $2,500 price area, known as a “fair value gap.” Patel believes the market could retest lower support levels in the $1,930–$2,100 zone, correlating with a strong bullish order block situated near $1,810 before starting a renewed ascent. Patel expects demand around this support area, potentially laying the groundwork for a significant rally targeting $4,000 to $5,000 down the road.
Overall, despite the latest pullback, market sentiment surrounding Ethereum remains relatively positive. Observers suggest that Ethereum may either consolidate near its current levels or experience a further healthy dip before resuming the ongoing upward momentum.
