Will ETH Price Finally Break Through $2,000 Resistance?

Despite the price drop at the beginning of the week and the 8% correction on Saturday, the overall result for the week was still a Bullish candlestick, with the price increase being only about 2%. As of now, the coin is priced at $1,920, with the high of the week being $2,025, reached by the ETH/USDT pair on Saturday, May 6th.

On May 3, the US Federal Reserve raised the key rate again, bringing it to a 17-year high. However, Jerome Powell, the head of the Central Bank, indicated that there could be a pause following this increase. Even with such favorable prospects for the crypto market, the main crypto coin's price did not reflect it significantly. Bitcoin failed to overcome the $30,000 mark, and Ethereum failed to maintain a foothold above $2,000.

Recently, a wallet owned by the Ethereum Foundation transferred 15,000 ETH to a Kraken deposit address, while one of Vitalik Buterin's personal addresses moved another 200 ETH to the exchange. These transactions have led to speculation about the fund's actions and the asset's future price dynamics. Past large Ethereum sales have preceded massive market crashes, leading some members of the crypto community to be cautious.

However, the news of the Ethereum Foundation asset sell-off does not necessarily mean that the price of ETH will fall sharply. Analysts have noted that the amount of ETH staking has exceeded the number of coins withdrawn since the Shapella update's activation. This trend indicates that Ethereum users view the asset as a long-term investment.

Looking at the daily price chart, we see that the ETHUSDT pair has been trading close to the 50-day MA for two weeks, with the price occasionally crossing it up and down. The struggle between buyers and sellers continues at the moment, and the recent surge towards the $2,000 mark could be a signal of an ongoing correction.

If we assume that the correction will be similar to the previous one, which took place in February 2023 and lasted a month, then the price decrease could amount to 61.8% from the previous price increase, falling on the mark of $1.662. This zone is also a strong horizontal support level, which the price may break through but only for a short period of time. We advise considering the $1,600-$1650 zone as a buying zone with growth potential, but this scenario could be canceled if the $2,100 zone is broken and the price fixes above the $2,000 level.


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