- Ethereum bulls saw increased demand in recent days, driving a price rally.
- The psychological $2k level is the next critical resistance level.
Ethereum [ETH] saw positive developments over the past few days. The Pectra upgrade, expected to be completed by the 30th of April, would bring technical improvements that would improve the network’s efficiency, usability, and security.
The MVRV pricing band was at the $1,367 level. Historically, retests of the MVRV pricing band have formed the price bottom, such as in 2019 and mid-2022.
Over the past two weeks, ETH saw a 20.8% price bounce. Yet, its long-term downtrend was still unbroken. Strengthening fundamentals helped explain the recent gains. Can the bulls keep this bounce going and turn it into a substantial rally?
Time for ETH optimism over the next week or two
Source: ETH/USDT on TradingView
The $1,904 level was the recent lower high to watch for ETH to regain a bullish structure. It appeared likely that the token could reach it. The A/D indicator was climbing higher in April. The CMF poked its head above +0.05 to denote sizable capital inflows.
The MFI also showed bullishness. However, the long-term bearish trend was still a factor. ETH had nearly tested the 161.8% southward extension level, plotted, based on its November rally from $2.3k to $4.1k.
Therefore, despite the recent gains, it can’t be said that bulls were having a revival from the long-term perspective. More cautious traders could look to ride this trend and take profit at key resistance levels, such as $1.9k-$2k.
Source: Coinglass
The 1-month liquidation map above showed a high density of liquidation levels in the $1,960-$2,000 region. The strength and closeness of the magnetic zone to the price meant that Ethereum would likely trend toward $2,000 in the coming days.
The $1,850 level could stall the bulls’ progress, but more gains are likely over the next week or two. After a sweep of the $2k region, traders should be wary of a bearish reversal. A breakout past $2k-$2.1k would signal bulls were regaining strength.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion