Ethereum Price News: Bullish Accumulation Spotted Below $2,400

Ethereum (ETH) has stalled recently after failing to climb above the $2,400 threshold in the past week. The token continues to retreat while other altcoins appear to be capturing investors’ attention.

In the past 30 days, ETH has booked a meager 3.6% gain while Solana (SOL) and BNB (BNB) have delivered solid returns of 15% and 11%, respectively.

These two had been lagging Ethereum for weeks, and appear to be catching up to the market’s latest recovery as sentiment seems to be shifting.

Clarity Act Paves the Way for Increased Crypto Adoption in the U.S.

The market is focused on how the Clarity Act is advancing within the U.S. Congress, as this piece of legislation should pave the way for increased adoption of stablecoins across the world’s most powerful economy.

As the biggest blockchain in the decentralized finance (DeFi) and real-world assets (RWA) space, Ethereum has much to gain from the approval of this law. However, market participants struggled to push its native asset past the $2,400 sell wall.

The Fear and Greed Index remains Neutral at 49 as investors are still cautious due to the instability of the situation in the Middle East and the upcoming transition of leadership within the Federal Reserve.

The next few weeks should be critical for the crypto market, depending on how the Clarity Act moves through the Senate’s Banking Committee and how the situation in Iran progresses.

Last week, exchange-traded funds (ETFs) linked to Ethereum brought in $71 million while Bitcoin-linked funds pulled in a much higher figure. This apparent divergence between the top crypto and the biggest altcoin in the space is classic early-cycle behavior.

Investors don’t believe yet that the downtrend is over, and they seem to be approaching the matter with caution until otherwise confirmed.

Open Interest for ETH Futures Rises by 38% in Three Months

Activity in the futures market seems to be picking up, indicating increased interest from speculators and bullish positioning ahead of a potential breakout of the $2,400 resistance.

According to data from CoinGlass, open interest (OI) rose from a recent low of around $24 billion in mid-February to $33 billion at the time of writing, meaning a 38% increase in the volumes of outstanding futures contracts in three months.

We are still 50% below the $70 billion peak we saw in August last year, but OI is now trending higher. This can also be interpreted as an early signal of a cycle bottom, as speculators are coming back to the market after months of getting roasted.

ETH Likely Bottomed at $1,800 and Should Keep Rallying Over the Next 12 Months

We continue to keep track of ETH’s journey after a strong buy signal in the weekly chart. We spotted a powerful historical pattern in this higher time frame weeks ago, as the Relative Strength Index (RSI) plummeted below 30.

The last three times this has happened, ETH has surged over the next few years and has made either a new all-time high or has retested the previous high. We see the $1,800 level as this cycle’s bottom, and expect a sustained recovery moving forward.

Considering that the top altcoin recently hit a new record at $4,650, we expect some strong gains ahead over the next 12 months. That said, this does not mean that ETH can’t retreat to $1,800.

The difference is that we would see that as an attractive opportunity to buy, especially if the Clarity Act is passed and the U.S. economy fully embraces stablecoins.

A move above the signal line by the RSI was the “tell” in previous instances to identify the beginning of ETH’s next bullish cycle. Hence, if the price retreats to the $2,150, as everything seems to indicate, that could create room for an interesting trading opportunity.

Price Action Indicates Ongoing Accumulation Ahead of $2,400 Breakout

Heading down to the daily chart, we can see that ETH hit the same ceiling that prevented it from rallying further in March. However, the price did not retreat right after. Instead, it has been consolidating in a range between $2,250 and $2,400.

This is a clear pattern of accumulation that should set the stage for an imminent breakout. The RSI confirms this consolidation, as the oscillator has been bouncing up and down within a tight range.

We see this consolidation stage as a “decisional” moment for ETH. A break above $2,400 should trigger a strong rally to $2,800, which has been our baseline short-term Ethereum price prediction.

This means a 22% upside potential from where ETH is trading now. Such a move would also involve a break above the 200-day exponential moving average (EMA). If we get to that point, we could safely say that the worst of this bear market is over.

We have a weekly buy signal in our favor, and the daily chart is lining up to deliver a breakout as well.

A Break Above This Key Resistance Could Result in a 4X Return

Moving down to the 4-hour chart, we can see the strength of that $2,400 sell wall, as ETH has failed to climb above that mark 5 times in the past month alone.

However, the market seems to be exhausting this selling pressure, and the number of buy signals spotted in this lower time frame is tremendous. Right now, they outpace the number of sell signals by 3 to 1.

This further confirms that institutions and whales are accumulating ETH at these levels, as our system keeps track of “decisional” candles that feature above-average volumes and a specific candle pattern.

We may see ETH bouncing off the low $2,220s at some point if this pullback continues, but we don’t expect a full-blown decline to $2,150 as momentum still seems to be on the side of bulls.

If we get a break above $2,400 and a buy signal that accompanies the move, that would confirm institutional support and would create room for a trading opportunity. With a stop price set at $2,300 to give the price action enough wiggle room, this trade offers a risk-reward ratio of 4x if the target is set at $2,800.