ETH trading in a symmetrical triangle pattern around $1,800, with support at $1,775-$1,785
Long-term ETH holders increased wallets by 22% in past two months despite price weakness
Bollinger Bands tightening with RSI at neutral 54.63, suggesting imminent volatility
Options trading volume jumped 75% with long positions outnumbering shorts (2.24:1 ratio on Binance)
Pectra upgrade on May 7 will raise validator staking limit from 32 ETH to 2,048 ETH
Ethereum has been trading in a consolidation pattern around the $1,800 mark, forming what technical analysts describe as a symmetrical triangle. This pattern shows a series of lower highs since April’s peak near $1,910, creating a narrowing price range that suggests a major move may be imminent.
The current price of approximately $1,806 sits at a critical juncture where several technical indicators converge.
The $1,785-$1,800 zone represents both horizontal support and the lower boundary of the triangle pattern. This area also coincides with the 200 EMA (Exponential Moving Average), creating a multi-layered support zone.
Resistance remains firm at the upper triangle boundary between $1,845-$1,850. This zone has repeatedly rejected bullish attempts over the past two weeks.
Whale Accumulation Signals Confidence
While retail traders appear hesitant, data from CryptoQuant reveals that long-term ETH holders have been accumulating aggressively. These addresses increased their holdings from 15.53 million ETH on March 10 to 19.03 million ETH by May 3.
This 22.54% increase occurred despite the current market weakness and despite many of these wallets sitting in unrealized losses.
These long-term holders have maintained a consistent buying pattern for ETH, bringing their average cost basis down from $2,026 to $1,980.
This accumulation pattern suggests strong conviction from investors with longer time horizons, who appear unfazed by short-term price fluctuations.
The price of Ethereum has faced downward pressure since reaching $4,107 in December 2024. Despite this multi-month correction, these holders continue to add to their positions rather than exit the market.
Volatility indicators suggest a major move may be brewing. The Keltner channel on the 4-hour timeframe has tightened between $1,768 and $1,867, while Bollinger Bands show similar compression.
The Relative Strength Index (RSI) sits at a neutral 54.63, neither overbought nor oversold. This technical setup typically precedes a volatility expansion.
Derivatives Market Points Higher
The derivatives market offers clues about potential price direction. Total ETH trading volume rose 26.51% to $46.3 billion, while options volume surged nearly 75% to $357.69 million.
More telling is the long-to-short ratio, which shows bulls outnumber bears by more than 2-to-1 on major exchanges. On Binance, this ratio stands at 2.24, while OKX shows 2.04.
Among Binance’s top traders, the ratio climbs even higher to 2.76, indicating stronger bullish sentiment among more sophisticated market participants.
Recent liquidation data shows $40.67 million wiped out in the last 24 hours, with $8.10 million being short positions. The increasing frequency of short liquidations across multiple timeframes suggests building upward pressure.
The ETH/USD chart reveals an important cluster of EMAs between $1,779 and $1,818. This dense support-resistance zone will likely determine the next directional move.
A clean break below $1,775 could trigger a slide toward $1,720-$1,740, or possibly deeper to $1,680 if selling accelerates.
Conversely, reclaiming the $1,846 level could quickly shift momentum in favor of buyers, potentially leading to a test of the $1,910 level and beyond to $1,950.
Market attention is also focusing on Ethereum’s upcoming network upgrade. The Pectra upgrade, scheduled for May 7, will increase the validator staking limit from 32 ETH to 2,048 ETH.
This upgrade will also enhance network throughput by increasing the number of data blobs per block, potentially improving efficiency for users.
Some analysts view the current price level as an opportunity. One analyst compared buying ETH now to “buying BTC at $4,000,” citing Ethereum’s growing use in real-world asset tokenization and rising institutional interest.
The combination of whale accumulation, neutral technical indicators, bullish derivatives positioning, and the upcoming protocol upgrade suggests Ethereum may be approaching a pivotal moment in its price trajectory.
For the next 24 hours, traders will be watching the $1,775-$1,785 support zone closely. Holding this level could set the stage for a push toward $1,850 and potentially $1,910 if momentum builds.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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