Ethereum, Trading Volume Skyrockets by 150%...Is May's Bullish Trend Confirmed?

▲ Ethereum (ETH)

Ethereum (Ethereum, ETH) has seen its trading volume surge by 150% in a single day, emitting a strong signal of a market price breakthrough.

According to a U.Today report on May 4 (local time), Ethereum's 24-hour trading volume surged by 150% compared to the previous day, with investors' buying pressure intensifying. An increase in trading volume is typically interpreted as a precursor to significant price movements, and the current market is focusing on whether Ethereum will make a full trend reversal. As buying pressure strengthens, a favorable environment appears to be forming for reclaiming key resistance levels.

Currently, Ethereum is testing its upper resistance level by absorbing selling pressure at a specific price range. The surge in trading volume provides strong momentum to break through thin order books, and if a breakthrough is confirmed, further price upside will open up. The Relative Strength Index (RSI) is also showing an upward trend, supporting the price increase, and positive signals are being observed in the Moving Average Convergence Divergence (MACD) index.

Technical analysis suggests that if Ethereum maintains its current trading volume and breaks through and settles above the resistance level, a short-term bullish rally is highly likely to begin in earnest. Conversely, if it fails to break through resistance despite the increased trading volume, a short-term price correction or prolonged sideways trading could occur. Defending the lower price support level is a key condition for bulls to maintain control.

Market experts are closely analyzing whether this surge in trading volume is due to mere speculative demand or the inflow of institutional funds. While correlation with major assets like Bitcoin (BTC) remains high, securing independent momentum for Ethereum is expected to bring warmth to the entire market. Ethereum's movements in the coming days, fueled by trading volume, are expected to be a gauge for the overall market sentiment in May.

*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.*