Ethereum Price Gains Attention As Blackrock Scoops Up $19.65M in ETH

Key Insights:

• BlackRock purchased 10,897 ETH worth $19.65M via Coinbase, boosting institutional interest in Ethereum price.
• Ethereum trades at $1,805.16, testing key resistance near $1,850 ahead of the Pectra upgrade on May 7.
• ETH’s valuation mirrors past market bottoms from 2020 and 2022, historically followed by strong price recoveries.22.

Ethereum (ETH) is drawing market focus again. This comes after BlackRock purchased 10,897 ETH, valued at approximately $19.65 million, on Coinbase.

The purchase occurred while Ethereum’s price hovered at $1,805.16, up 1.14% in the past 24 hours. As the crypto market remains cautious, analysts are closely watching ETH’s current levels, especially with its valuation near historical lows and a key protocol upgrade set for May 7.

BlackRock’s Move Sparks Market Reactions

The market took notice when BlackRock reportedly purchased 10,897 ETH worth $19.65 million via Coinbase. The transaction was shared widely across crypto social media platforms. This institutional move added to bullish expectations, as it reflects sustained interest in Ethereum from large investors.

Large-scale purchases like this are often viewed as signals of confidence. While they don’t guarantee future price increases, institutional buys typically influence broader market sentiment. Traders now await signs of whether this buying pressure will lead to more accumulation or if ETH will consolidate at its current levels.

Social media reactions indicate growing optimism, though some caution remains due to Ethereum’s struggle to break past resistance zones. Analysts continue to track on-chain metrics and order books for signs of follow-through buying.

Ethereum Price Faces Key Resistance Near $1,850 Zone

Ethereum price is approaching a strong resistance area near the $1,850 price zone. This level has acted as a barrier multiple times over recent weeks. Analysts say ETH needs to close above this zone with strong volume to confirm a possible breakout.

Analysts like Mr Kelvin noted that sellers have been active in this region, which has prevented price movement beyond it. He explained,

“If ETH can close strong above that resistance (not just wick above), then I’ll be watching for a retest of that zone as new support.”

A continued rejection from this level could open the way for further downside. Mr Kelvin also pointed to a lower support zone around $1,537. He mentioned that if Ethereum fails to hold above current levels, it could revisit that area where buyers have previously stepped in.

Price Patterns and Historical Support Levels Emerge

Technical indicators show signs of a potential reversal. A possible double bottom formation is observed between the levels $ 1,537 and $ 1,800. This pattern is used where there is an upward momentum of a particular price that is on the pressure of selling, or where the price is increasing and there is interest in buying.

Analyst CryptoJack stated that this level has provided support in previous pullbacks. There is an important support level at around $1,537 as we can see from the chart and that has been held several times.

The other technical feature is the Supertrend for Ethereum: It currently features a red line above the price level that may act as a resistance level. For a trend shift to the upside, we would need the price to cross this line and establish itself above it.

Traders are also watching the Fibonacci level at $2,045. This level could be difficult to surpass unless there is a rise in buying volume. If ETH can maintain a daily close above $1,880, then the potential for a move toward $2,000 becomes stronger.

Market Valuation and Historical Context Provide Insight

On-chain metrics and valuation models show Ethereum price trading at a relatively low value compared to historical norms. Michaël van de Poppe, a well-known market analyst, stated that ETH is at its lowest valuation since several previous bottoms.

He said, “The valuation of ETH is on its lowest point since August ’22, March ’20, and January ’19.” These points all marked local bottoms that were followed by substantial gains within 12 months.

Van de Poppe referenced the MVRV Z-score, an indicator used to assess market valuation. According to him, these conditions often appear during accumulation phases, where long-term investors tend to buy more.

This outlook has led some to consider the current price levels as attractive for accumulation. The market has also been watching Ethereum’s performance as the network approaches the May 7 Pectra upgrade, which may bring changes to its technical and operational functions.

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