Important insights:
- BlackRock has bought 10,897 ETH, worth $19.65 million via Coinbase, raising institutional interest in Ethereum prices.
- Ethereum trades at $1,805.16 and will test a critical resistance of nearly $1,850 on May 7th ahead of the Pectra upgrade.
- ETH’s ratings have passed the market bottom in 2020 and 2022, with a historically strong price recovery.
Ethereum (ETH) is once again focusing on the market. This comes after BlackRock purchased 10,897 ETH, valued at Coinbase at approximately $19.65 million.
Purchases occurred, with Ethereum prices rising at $1,805.16, an increase of 1.14% over the past 24 hours. As the crypto market remains cautious, analysts are closely watching the current level of ETH. In particular, it has a near-historic low rating and a major protocol upgrade set for May 7th.
BlackRock’s movement triggers market response
The market was attracted attention as BlackRock reportedly purchased 10,897 ETH, worth $19.65 million through Coinbase. The transaction was widely shared among crypto social media platforms. This institutional move added to bullish expectations as it reflects sustained interest in Ethereum from large investors.
Such large purchases are often considered a signal of trust. They do not guarantee future price increases, but purchasing facilities usually affects wider market sentiment. Traders are waiting for indications of whether this purchase pressure will lead to more accumulation or whether ETH will consolidate at the current level.
Social media responses show an increase in optimism, but some attention remains due to Ethereum’s struggle to break past zones of resistance. Analysts continue to track metrics and orders on the chain for signs of follow-through purchases.
Ethereum Price faces critical resistance near the $1,850 zone
Ethereum prices are approaching a strong resistance area near the $1,850 price range. This level has served as a barrier multiple times in recent weeks. Analysts say ETH needs to close with a strong volume above this zone.
Analysts like Kelvin noted that sellers are operating in the area and hindering price movements beyond that. He explained,
“If ETH can close its resistance (not just above), we’ll monitor the retest of that zone as new support.”
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Continuous rejection from this level could pave the way for even more downsides. Kelvin also pointed to a drop in the support zone around $1,537. He said that if Ethereum cannot hold above its current level, buyers can revisit areas where they previously intervened.
Price patterns and historical support levels appear
Technical indicators show signs of a potential reversal. A possible double bottom is observed between levels $1,537 and $1,800. This pattern is used when there is a certain upward momentum of a price due to sales pressure, or when prices rise and are interested in purchasing.
Analyst Cryptojack said this level offers support in previous pullbacks. As you can see from the chart, there is an important level of support for around $1,537, which has been held several times.
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Another technical feature is Ethereum’s super trend. It currently has a red line above the price level that could serve as a resistance level. A price is required to establish beyond this line and above due to a trend shift.
Traders are also looking at Fibonacci levels at $2,045. This level can be difficult to surpass unless purchase volume increases. If ETH can maintain a daily closure of more than $1,880 a day, there is a strong chance of moving to $2,000.
Market assessment and historical context provide insights
On-chain metrics and valuation models show Ethereum price trading at a relatively low value compared to historical norms. Famous market analyst Michael Van de Poppe said ETH is at the lowest rating from some of its previous bottoms.
He said, “ETH’s ratings are at their lowest since August 2022, March 2020 and 19th September.” All of these points marked local bottoms, which had a significant profit within 12 months.
Van de Poppe referenced the MVRV Z-Score, an indicator used to assess market valuations. According to him, these conditions often appear at the accumulation stage, and long-term investors tend to buy more.
This outlook makes some consider current price levels attractive for accumulation. Additionally, as the network approaches the May 7th Pectra upgrade, the market is watching Ethereum performance, potentially causing changes to technical and operational features.