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Ethereum’s Explosive 21% Surge: Spot Market Investors and Key Technical Levels Drive ETH’s Recovery

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  • May 10, 2025
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Ethereum (ETH) experienced a remarkable 21.8% surge on Thursday, marking its highest single-day gain since May 2021, driven by a surge in buying pressure from crypto-native spot investors. This rally was further supported by a significant 180,000 ETH withdrawal from exchanges, highlighting the growing confidence among investors. While the surge took place, Ethereum ETFs incurred outflows, and the rally was not driven by high leverage or ETF usage. Activation of the Pectra upgrade and reforms in the Ethereum Foundation also underpinned a positive sentiment shift. With ETH targeting resistance levels of $2,500 and $2,850, technical indicators point to further potential, although a weekly close below $1,680 would render the bullish forecast invalid. KEY LOOKOUTS •  The recent rally was predominantly fueled by crypto-native spot investors, with a whopping 180,000 ETH being withdrawn from exchanges within a mere 24 hours, reflecting growing investor confidence and draining market liquidity. •  ETH needs to break above major resistance levels of $2,500 and $2,850 to maintain its upward trend. A successful breakout above these levels may set the stage for additional price appreciation, while a failure to break above them could lead to a short-term correction. •  Ethereum’s positive sentiment surged with the activation of the Pectra upgrade, which enhances user experience, staking efficiency, and scalability, driving more interest and activity on the network. •  A weekly close below the $1,680 support level would make the current bullish thesis invalid, potentially pushing ETH to the next significant support at $1,400, and emphasizing the need to hold above this level to sustain bullish momentum. Ethereum’s recent 21.8% rally was chiefly led by an increase in crypto-native spot buyers’ buying pressure, which saw more than 180,000 ETH leaving the exchanges over 24 hours as investors bet big on greater investor confidence. Throughout the rally, Ethereum ETFs saw further net outflows, and momentum was not triggered by leverage or ETF activity. Technical indicators are currently targeting major resistance levels at $2,500 and $2,850, and ETH must break these levels for a long-term upward trend. The activation of the Pectra upgrade has also seen a positive sentiment change, increasing interest in the network. Nevertheless, a weekly close below $1,680 would negate the bullish scenario, and the price may correct to $1,400. Ethereum’s latest 21.8% rally was driven by spot market investors pulling huge amounts of ETH out of exchanges, which indicates increasing confidence. With critical resistance levels at $2,500 and $2,850 within reach, Ethereum’s upward momentum may carry on if it manages to stay above $1,680; otherwise, a pullback will ensue. •  Ethereum recorded its largest single-day increase since May 2021, going up 21.8% on Thursday. •  Crypto-native spot buyers led the rally, with 180,000 ETH being exchanged out of exchanges within 24 hours. •  Abraxas Capital transferred more than 138,000 ETH from Kraken and Binance in the last few days, indicating institutionally driven buying. •  Ethereum’s Weighted Sentiment jumped to a record 5.2 in May 2024, with the Pectra upgrade activation. •  In spite of the price rally, US spot Ether ETFs saw net outflows, suggesting that the rally was not fueled by ETF flows or leverage. •  Ethereum needs to overcome the resistance levels of $2,500 and $2,850 for further bullish momentum, with the 100-week SMA reinforcing the levels. •  A weekly close below the price of $1,680 would rule out the bullish scenario, likely taking ETH to the $1,400 support level. Ethereum recently saw a major rally, with its price rising 21.8% in one day, the biggest jump since May 2021. The rally was mainly driven by intense buying interest from crypto-native investors who pulled huge quantities of ETH out of exchanges, indicating faith in the asset’s long-term worth. Furthermore, the activation of the Pectra upgrade on Ethereum’s mainnet also helped in driving sentiment positively as the upgrade sees enhanced staking efficiency and user experience. Institutional investment was also evident, with huge withdrawals on big exchanges such as Binance and Kraken, showing increased interest from both individual and institutional investors. ETHEREUM DAILY PRICE CHART CHART SOURCE: TradingView This price action is during a heightened optimism surrounding Ethereum as active addresses on the network continue to rise, further underscoring the uptick in user and investor activity. The positivity around Ethereum is further bolstered by its continuous developments, such as network updates and organizational shifts within the Ethereum Foundation. As the ecosystem matures, the recent price spike serves to illustrate the resilience and potential of Ethereum within the dynamic cryptocurrency landscape. TECHNICAL ANALYSIS Ethereum’s recent price surge is testing crucial resistance levels at $2,500 and $2,850, which are key for determining whether the current bullish momentum will continue. The price has already encountered a rejection near the $2,500 level, strengthened by the 100-week Simple Moving Average (SMA), but a breakthrough above these levels could signal further upward movement. The Relative Strength Index (RSI) is now testing its neutral level, and the Moving Average Convergence Divergence (MACD) is trading around its neutral line, indicating that ETH’s bullish momentum may increase if these indicators cross above their respective neutral levels. But a weekly close below $1,680 would nullify the bullish scenario, and the price might pull back towards the $1,400 support area. FORECAST Ethereum’s recent surge has set it up to potentially break above important resistance levels at $2,500 and $2,850. If these levels are broken, ETH may see a strong surge upward, furthering its recovery to higher price levels. Favorable momentum may be further enhanced by ongoing interest from spot market investors and the implementation of the Pectra upgrade, which increases scalability and staking efficiency. If technical indicators such as the RSI and MACD continue to strengthen, there is a likelihood of ETH breaking above these key levels, with the next potential target being $3,000 or higher, given the bullish sentiment in the market. Alternatively, Ethereum’s recent price action may be subjected to a pullback if it is unable to break above the $2,500 and $2,850 resistance levels. A rejection here would result in a short-term correction,

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Crypto Ethereum

Ethereum Price Flirts with Collapse as Whale Dump Creates Bearish Pressure at Pivotal $1,500 Support

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  • April 12, 2025
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The price of Ethereum has fallen back to approximately $1,540 after eliminating most of its tariff pause gains, as whale action and general market uncertainty create renewed selling pressure. Whales have dumped huge sums of ETH within the last 24 hours, taking whale balances to a five-month low and creating bearish sentiment. With bulls and bears in an impasse on the all-important $1,500 support zone, technical indications are that a risk of continued downside unless broad buying interest surges is emerging. The next few days shall prove critical to Ethereum, where a breach through this support opens up a gate to a broader correction into the $1,100 region. KEY LOOKOUTS • Ethereum is trading precariously near the $1,500 support level; a breach could lead to a steep fall to the $1,100 zone, visiting levels from the 2022 crypto crashes. • Large Ethereum whales have been unloading significant holdings, pushing their combined balance to a five-month low — an open invitation of risk aversion among large investors. • RSI, Stochastic, and MACD all point to growing bearish pressure, calling for additional declines unless bulls retake control above the downtrending channel. • Persistent global economic issues and the Trump administration’s tariff policy remain a drag on investor sentiment, constraining Ethereum’s potential to recover. The recent price behavior of Ethereum underscores several key factors investors need to monitor closely. The $1,500 level of support is under intense pressure, and a breakdown below it might initiate a more significant correction towards the $1,100 zone — which has traditionally been a very solid support zone. On-chain information indicates a sharp decline in whale holdings, indicating large-scale profit-taking and increased risk aversion among large investors. Technical indicators such as RSI, Stochastic, and MACD are signaling bearish momentum, which supports the possibility of further downside. Meanwhile, increased macroeconomic uncertainty, driven by persistent tariff talks and risk-off sentiment, keeps Ethereum’s potential for recovery dampened. Ethereum is finding it hard to maintain the important $1,500 level of support in the face of whale sell-offs and bearish technical indications influencing price action. A breach here may instigate a further correction towards the $1,100 levels. Macro uncertainty and losing bullish momentum put the market under tension. •  Ethereum wiped out recent gains and is currently trading at approximately $1,540, weighed down by whale-led sell-offs. •  Whale wallets have dropped their ETH holdings to a five-month low, indicating a shift in bearish sentiment. •   One major whale sold 10,702 ETH at $1,576 after remaining inactive for two years, contributing to the selling pressure. •  Ethereum is probing its crucial $1,500 support area — a determinative range for short-term direction. •  Technicals such as RSI, Stochastic, and MACD indicate building bearish momentum. •  A breakdown below $1,522–$1,500 would push ETH downwards towards the $1,100 area, a historical support area. •  Continued macro uncertainty and tariff-related risks still constrain Ethereum’s recovery and encourage market caution. Ethereum is once more under pressure with the shift of market sentiment with recent global developments. Following an initial optimism sparked by the recent halt of U.S. tariffs, faith started to dissipate, particularly when some of the largest Ethereum holders — the so-called whales — started selling a huge amount of ETH. Their unexpected selling behavior has sparked fears of the market’s stability since it tends to be an indicator of a shift in investor mentality. The crypto world now waits with bated breath to see how the market responds to these actions, particularly as uncertainty regarding international trade policy persists. ETHEREUM DAILY PRICE CHART CHART SOURCE: TradingView Meanwhile, Ethereum’s position as a top blockchain platform is not weakened by short-term investor responses. The network still draws developers, companies, and consumers who believe in its future role in fueling decentralized apps, NFTs, and DeFi. While the market can fluctuate with outside news and investor sentiment, Ethereum’s position in future digital finance is still considered very relevant. TECHNICAL ANALYSIS Ethereum is demonstrating increased weakening as it labors to maintain above pivotal levels of support. Recent price moves indicate bearish strength in increasing, with oscillators such as the Relative Strength Index (RSI) showing oversold signs, and the Moving Average Convergence Divergence (MACD) showing signs of ongoing decline. The price is moving in a decreasing channel currently and, unless the bulls can breach the upper barrier, there will always be chances of it plummeting further. Traders closely observe the area around $1,500 because maintaining this point could initiate short-term recovery but breaking below would pave the way for more serious losses. FORECAST If Ethereum is able to stay above the key $1,500 support level, then there is high likelihood of short-term recovery. A rebound from this area would drive ETH towards the $1,680 to $1,800 region that has served as resistance over the past few months. Optimism may also re-emerge if macroeconomic trends stabilize or new buying interest from retail and institutional investors increases. A breakout at $1,800 would be a bullish sign for buyers, and it could trigger a new bullish trend. On the flip side, not holding the $1,500 support level might push Ethereum deeper into a correction. If pressure to sell intensifies, the next significant price area to observe is between $1,100 and $1,000 — a level that stood strong amidst the steep plunges of 2022. Ongoing whale distribution, unfavorable global news, or poor investor sentiment might push this further downward, leaving Ethereum stuck in a bearish pattern until fresh drivers come along.

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