Ethereum has staged a strong recovery, surging 15% and reclaiming market dominance after hitting an all-time low. The price of ETH climbed above $1,800 on April 23, outpacing Bitcoin’s gains and lifting the broader crypto market to a $3 trillion valuation. This resurgence follows weeks of sideways movement, with Ethereum finally breaking through key resistance levels.
The rebound comes amid growing optimism surrounding Ethereum’s upcoming technical upgrades, including the Pectra update and potential approval of staking ETFs. Institutional investors have also shown renewed interest, with Ethereum ETFs recording their largest daily inflows since February. Fidelity’s Ethereum ETF led the charge, attracting millions in new investments, signaling a shift in sentiment among large-scale investors.
Technical Factors Behind the Surge
Ethereum’s price movement has been supported by bullish technical formations, including a breakout above the 100-hourly simple moving average. Analysts suggest that Ethereum’s oversold conditions created a favorable environment for a price rebound. If ETH maintains momentum, it could test the psychologically significant $2,000 level in the coming weeks.
Despite the price surge, Ethereum faces ongoing challenges, including institutional selling pressure and declining on-chain activity. Reports indicate that major players such as Galaxy Digital and the Ethereum Foundation have moved large amounts of ETH to centralized exchanges, often a precursor to sell-offs.
Ethereum’s transaction fees have dropped significantly—by 56% in a week and 88% over three months—indicating reduced network usage. While lower fees can be beneficial for users, they also suggest a slowdown in overall activity on the Ethereum blockchain. However, Ethereum’s dominance in DeFi and Layer 2 solutions continues to support its long-term value proposition.
Shogun Lin
