Ethereum, the second-largest asset by market capitalization is currently under intense selling pressure with the increase in ETH inflow to centralized exchanges. Typically, a rise in ETH inflow is associated with increased selling and a negative impact on the asset’s price.

Based on on-chain data from crypto intelligence tracker Santiment, there is a massive spike in Ethereum deposits to centralized cryptocurrency exchanges which signals an increases in short-term selling pressure on the asset. Ethereum price climbed to key resistance at $2,000 on May 6. Ethereum blockchain’s developers recently discussed Ethereum Improvement Proposals (EIPs) to include in future upgrades and boost scalability of the ETH blockchain.

Ethereum price is currently in an uptrend, climbing towards the bullish target of $2,500. ETH tested resistance at $2,000 today before correcting lower. ETH price is currently above three Exponential Moving Averages at 10, 50 and 200-day. Immediate support is at $1,912, the 38.2% Fibonacci level.

ETH price could face immediate resistance at $2,104, a level that has acted as resistance for nearly ten months. The next key resistances are the 50% Fibonacci level at $2,231 and $2,341, that acted as support during Ethereum’s run up to $3,500 in mid-2022.

A decline below key support at $1,774 could invalidate the bullish thesis for Ethereum. Three EMAs and the 23.6% Fibonacci level of $1,517 could act as support for the asset in the event of a decline.

Analysts at TradingAlpha.io evaluated the ETH/USD price chart and noted institutional buying, represented by an orange thrust candle in the chart below. When ETH price crossed $1,952, institutions lined up to scoop up the altcoin, according to the experts.

Typically, institutional buying is a bullish sign for Ethereum and hints at a prolonged upward trend in the altcoin.

Ethereum to test $2,000 level

May 07 2023