Ethereum recovered from a sudden drop to $1,740, but a key technical pattern hints at a potential correction before moving upward.
Ethereum ETH $2 612 24h volatility: 3.9% Market cap: $315.15 B Vol. 24h: $16.83 B has been struggling to break above the psychological $2,000 mark over the past two months. The leading altcoin even dropped below the $1,400 mark on April 9.
On April 22, Ethereum gained upward momentum, rising from $1,550 to $1,800, as the optimism around Bitcoin BTC $106 897 24h volatility: 1.8% Market cap: $2.12 T Vol. 24h: $23.21 B pushed the broader crypto market toward the $3 trillion mark.
However, the consolidation came to an end on April 30. Ethereum dropped to a local low of $1,736 in less than two hours.
This brought increased liquidations for Ethereum, surpassing Bitcoin’s $64 million and reaching $67 million — $48 million longs and $19 million shorts, according to data from CoinGlass. Long liquidations usually trigger panic among short-term traders.
Consequently, a head and shoulders pattern has been created on the one-hour ETH price chart.
ETH 1H chart – May 1 | Source: TradingView
Ethereum will likely see a correction to around $1,770 before gaining bullish momentum. However, a price fall below $1,760 could trigger further selloff to potentially push the price to the $1,700 mark.
On the other hand, Ethereum could break the head and shoulders pattern if the price pushes above the $1,830 resistance.
At this point, Ethereum’s relative strength index (RSI) is hovering at 54, showing a neutral position. This puts ETH in a low-volatility position.
In addition to the technical indicators, Ethereum’s price movements would also depend on the broader market sentiment, macroeconomic conditions and whale accumulation.
A key catalyst for the leading altcoin could be the approval of ETH ETF staking in the US. Grayscale has already held a meeting with the US Securities and Exchange Commission to get the green light for the ETHE fund’s staking.
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