Ethereum Rises to $2K During Market Rally; What’s the Next Target?

Following a remarkable rise exceeding 10% on Wednesday, Ethereum (ETH) has surpassed the $2,000 threshold for the first time since March. This surge leads analysts to speculate the possibility of the second-largest cryptocurrency regaining its previous macro range in the upcoming days.

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Ethereum Reaches a Seven-Week Peak

In a notable development, Ethereum has revisited the $2,000 resistance level for the first time in over a month, achieving a seven-week high at $2,075. At the end of March, the leading altcoin had fallen from this price range and subsequently dropped to its two-year low of $1,385 in the weeks that followed.

During the market’s recovery in late April, ETH broke significant resistance levels, moving back into the $1,600-$1,750 range over the past two weeks. Earlier this week, it successfully reclaimed the $1,800 mark, though concerns arose among investors regarding potential stagnation and a possible retreat to lower support areas.

Nevertheless, Ethereum surged by 8.3% towards the $1,950 mark following comments from US President Donald Trump regarding a forthcoming “major trade deal” with a “big and respected country” slated for announcement on May 8.

On Thursday, the $6 billion agreement with the UK propelled ETH past the $2,000 milestone, approaching the $2,100 range. Analyst Rekt Capital emphasized the “strong breakout observed,” noting that the cryptocurrency had tested the bottom of its historical demand zone and rebounded approximately 14% towards the top of this range.

Post-price surge, the analyst stated that ETH needs to convert the $1,930 level into a support zone to prevent a rejection or downside movement, thereby confirming a breakout towards the $2,200 area.

“Ethereum must maintain a position above $1,930 to ensure a possibility of revisiting $2,200 (black). The target for ETH is to leverage this pale blue historical demand area to re-align with its $2,200-$3,900 macro range,” he elaborated.

ETH Anticipates a New Bullish Trend

Rekt Capital also noted that ETH’s dominance is “increasing after reaching new All-Time Lows,” which reflects patterns seen in 2020. At that time, the cryptocurrency’s dominance rose after hitting a low, leading to higher values in subsequent months.

Simultaneously, Daan Crypto Trades observed that Ethereum is testing its upper range against its BTC trading pair. In their analysis, they stated, “this movement is minor compared to what it must achieve for significant relief. However, its impact on altcoins can be seen even with a ~7% move against BTC.”

Although the recent price increase appears “strong,” the trader cautioned investors against becoming overly optimistic until ETH/BTC breaks through and remains above the 0.0202 upper range.

“If it accomplishes that, we could be poised for a more substantial reversal in ALT/BTC pairs and for BTC dominance to decline. For now, we remain in a range,” Daan clarified.

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He further suggested that investors should brace for a significant price movement, as such performance “tends to conclude with sharp fluctuations toward the upside before stabilizing.”

Ali Martinez emphasized that a crucial supply level for the cryptocurrency is situated around $2,380, where over 12 million addresses acquired 69.6 million ETH. The analyst notes, “surpassing this threshold could trigger a new bullish momentum.”

As of now, Ethereum is trading at $2,050, reflecting a 13.5% increase over the daily timeframe.