Ether (ETH) has rebounded more than 25% from February’s low below $1,800, and the combination of technical and onchain signals suggests the rebound may continue into May.
Key takeaways:
- Ether’s technicals favor the bulls, with an ETH price target of $3,000.
- ETH maintains a support zone that previously sparked a 22-27% price rebound.
- CVD, which has taken a place in the ether market, remains positive, suggesting confidence among buyers.
ETH price charts target $3,000
Ether technical setups on multiple timeframes support ETH price rally towards the end of April.
The ETH/USD pair has been forming a bull flag pattern on the daily chart since early April, as shown below.
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A bull flag pattern is a bullish continuation pattern that forms after price consolidates within a falling range after a acute price augment.
The flag will be resolved when price breaks above the upper trendline at $2,350 and may rise by the height of the previous uptrend. This places the upper price target for ETH just above $3,000, approximately 33.5% above the current price.
ETH/USD daily chart. Source: Cointelegraph/TradingView
Meanwhile, the rising triangle on the eight-hour chart suggests that ETH was preparing for a significant move higher.
A break above the upper triangle trend line at $2,400 would confirm the pattern, opening the way for a rally towards the measured triangle target of $3,305. This move would bring total gains to 46%.
ETH/USD daily chart. Source: Cointelegraph/TradingView
They suggest other technical configurations The price of ETH may rise to $3,000-$6,000 in the coming months.
ETH price is based on sturdy support around $2,000
Since the beginning of February, ETH/USD has been making higher and higher lows, and the price has consistently remained on a multi-month support trend line.
Each bounce from this trendline preceded price increases of 22-27%, often driving ETH back towards or even beyond the high formed after the last bounce. The current configuration reflects previous cycles.
ETH/USD daily chart. Source: Cointelegraph/TradingView
Ether is currently consolidating near trendline support around $2,000-$2,200, which also coincides with the 50-day (yellow wave) and 100-day SMA (brown), a key energetic support level in ongoing uptrends.
Meanwhile, UTXO has realized price distribution data (URPD). can be seen that Ether is in a significant support zone between $1,980 and $2,178, where investors have purchased 7.4 million ETH.
ETH URPD, the highest partitioning level of all time. Source: Glassnode
The rebound from this range increased the likelihood that Ether price would move higher to overcome the resistance at $2,400 towards the next major resistance at $2,800-$3,000, where investors purchased approximately 14 million ETH.
CVD taking a spot on Ether signals high buyer volume
Ether’s 90-day cumulative spot taker volume delta (CVD) shows that buy orders (taker buy) have become dominant again. CVD measures the difference between buying and selling volume over a three-month period.
The indicator remained in the neutral zone from mid-February to mid-March, while ETH/USD consolidated in the range of $1,800-2,200.
CVD turned positive (green bars in the chart below) on March 15 when the price broke above the resistance at $2,200 and has remained positive since then. This indicates optimism among traders as they actively position themselves for further profits.
If CVD remains green, it means buyers are not pulling back, which could set the stage for another wave of gains as seen in historical gains. A similar event in 2024 was accompanied by an 85% price augment.
CVD accepting spot ETH. Source: CryptoQuant
Meanwhile, buying volume from eager Ether rose to more than $1 billion on Wednesday, suggesting bulls took advantage of the dip below $2,300 to buy more, according to CryptoQuant data.
“Today, however, the move below the $2,300 zone has renewed interest among traders,” CryptoQuant analyst Darkfost he said in Thursday’s QuickTake note, adding:
“This suggests that market participants still seem willing to bet on a more constructive near-term outlook for Ethereum.”
ETH purchase volume. Source: CryptoQuant
