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

▲ Ethereum (ETH)

Ethereum (ETH) has seen its trading volume surge by 150% in a single day, signaling a strong price breakout in the market.

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

Currently, Ethereum is absorbing selling pressure at a specific price range and testing upper resistance levels. The surge in trading volume provides strong momentum to break through thin order books, and if a breakout is confirmed, additional 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) indicator.

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

Market experts are closely analyzing whether this surge in trading volume is merely speculative demand or due to an influx of institutional funds. While correlation with major assets like Bitcoin (BTC) remains high, Ethereum's independent momentum is expected to inject warmth into the entire market. The movement of Ethereum, fueled by trading volume, over the next few days is 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 investment losses based on it. This content should be interpreted for informational purposes only.*