Ethereum, a signal for a 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 a May rally. The market currently believes that Ethereum's selling pressure absorption process is nearing its end and is anticipating a price breakout.

According to CoinMarketCap real-time data on May 4 (local time), the price of Ethereum is recorded at $2,320.69. Although this is a 0.34% decrease from the previous day, it maintains a market capitalization of $281 billion, firmly holding its position as the second-largest virtual asset. The 24-hour trading volume is reported as $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 that it is at an attractive price point compared to its previous high.

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

Strong downside support is established between $2,000 and $2,200. On-chain analysis indicates that investors have heavily accumulated approximately 7.4 million ETH between $1,980 and $2,178. If the $2,200 support level holds, it sets the stage 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 that a directional decision is imminent.

Market experts are paying attention to the large supply wall of approximately 14 million ETH positioned between $2,400 and $2,800. Breaking through the resistance in this range will be a key factor determining the success or failure of the May uptrend. Historically, May has been a very volatile month for Ethereum, and a strong catalyst is needed to break the current stagnation. If the inflow of spot ETF funds improves, a buy-dominant market atmosphere is expected to form.

Ethereum is currently in a phase of consolidating energy and preparing for new price expansion. If the sideways trading at the $2,325 level concludes and the resistance breakthrough materializes, Ethereum 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.*