The ETHUSD price has been declining since the beginning of May. On Wednesday, May 6, it opened at 1,809.01. Ethereum (ETH) is currently trading near the level of 1,800, consolidating in a narrow range after prolonged downward pressure.
Despite the current correction, Ethereum's fundamentals reflect sustained investor optimism. Data from analytics platform CryptoQuant shows a significant rise in activity among long-term holders, as addresses accumulating ETH without large withdrawals have increased their holdings by 22% over the past two months. This is a strong signal of strategic investors' confidence in the cryptocurrency's future growth.
Regulatory developments also support bullish sentiment. The recent memorandum of understanding between Binance and Kyrgyzstan's National Investment Agency paves the way for digital asset adoption in the region. In addition, growing interest in Ethereum ETFs confirms improved market sentiment and increased confidence of traditional investors.
This week Ethereum is facing an important stage of its technical development. The Pectra update, set for May 7, will introduce major improvements to the staking mechanism and enhance network scalability. These upgrades could positively influence price dynamics, attracting more interest from both investors and developers.
The technical picture indicates that a bullish momentum is forming. The price is hovering between moving averages, above the EMA 20 (1777.435), but still below the EMA 50 (1853.57). The 20 EMA is gradually rising and the RSI is near the upper limit of the neutral zone, signaling a potential rebound. Notably, on April 26, the price broke out of a long-term downtrend, which is a key technical signal. Market participants are now carefully watching whether ETH will be able to sustain its momentum and breach the psychological level of $2,000.
Current recommendation:
Buy at the current price. Take profit – 2,000. Stop loss – 1,740.
This content is for informational purposes only and is not intended to be investing advice.
