Ethereum, a signal for its return to $3,000?... "Break through the 14 million ETH selling wall"

▲ Ethereum (ETH)

Ethereum (ETH) is attempting to break through the key resistance level of $2,350, completing a bull flag pattern for an upward rally in May. The market currently believes that Ethereum's selling pressure absorption process is nearing its end and is anticipating a price explosion.

According to CoinMarketCap real-time data on May 4 (local time), Ethereum's price is $2,320.69. While this is a 0.34% decrease from the previous day, it maintains its market capitalization of $281 billion, firmly holding its position as the second-largest virtual asset. The 24-hour trading volume is recorded at $9.3 billion, proving that market liquidity remains abundant. The 52-week price range is shown as $1,756.73 to $4,946.05, indicating an attractive price relative to its all-time high.

Technical analysis shows that Ethereum has been forming a bull flag pattern since early April, consolidating its price in a narrow downward sloping channel. A decisive breakout above the upper resistance level of $2,350 would likely test price levels above $3,000. An ascending triangle pattern is observed on the 8-hour chart, and if resistance is overcome, the target price could be adjusted upwards to $3,305. This suggests an additional upside potential of approximately 46% from the current price.

Strong downside support is established between $2,000 and $2,200. On-chain analysis reveals that investors have concentrated their accumulation of approximately 7.4 million ETH between $1,980 and $2,178. If the $2,200 support level holds, a foundation will be laid for a strong rebound after a short-term correction. Key indicators such as the Relative Strength Index are showing recovery signals from oversold levels, suggesting an imminent decision on direction.

Market experts are paying close attention to the large supply zone of approximately 14 million ETH concentrated in the $2,400 to $2,800 range. Breaking through the resistance in this zone is a key variable that will determine the success of the May bullish market. Historically, May has been a very volatile month for Ethereum, and a strong catalyst is needed to break the current stagnation. If the trend of spot ETF fund inflows improves, a buy-dominant market sentiment is expected to form.

Ethereum is currently consolidating energy and preparing for a new price expansion. If the sideways trading at the $2,325 level concludes and the resistance breakout materializes, it is expected to regain market leadership.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*