• Ethereum (ETH) surged 13.17%, reaching $1,786, with market cap at $215.6 billion.
• ETH broke above resistance at $1,688 and looks towards $1,850, hinting at further rally.
• ETH price could fall to $1,600 if its selling pressure increases.

Ethereum (ETH) surged 13.17% over the past 24 hours to $1,786.09. The surge occurs in the wake of a general rally in the overall cryptocurrency market by the leading cryptocurrency, Bitcoin. Ethereum market cap rose to $215.6 billion, accompanied by a 70% growth in trading volume to $25.35 billion—indicating increased trader interest.

ETH’s recent action coincides with a robust bounce off a falling trendline established since March 25. It rapidly moved over resistance at $1,688, a point where price action had capped increases since April 9. This breakout indicates the possibility of a continued rally, assuming ETH regains and sustains the all-important psychological level of $1,800.

Analyst @ali_charts pointed out that Ethereum is targeting a surge to $1,850. The rally is sustained by investor optimism and growth in on-chain activity. ETH’s recent breakout above resistance indicates a potential reversal to the bulls—albeit with caution considering that there are still some lingering effects of wider negative pressures.

Ethereum showed robust bullish momentum, remaining above $1,550 and surging above $1,620 and $1,650. The price even broke above resistance levels at $1,700 and $1,760, reaching $1,800. ETH established a peak at $1,803, with further upside potential, targeting the $1,820 resistance.

Key levels to watch include $1,850, where a breakout could lead to $1,920. A continued bullish move could see Ethereum targeting $1,950 or even $2,000 in the near term. Currently, ETH is trading above the 100-hourly Simple Moving Average, maintaining a positive outlook.

Lookonchain data indicates that Galaxy Digital just sold about $106 million of ETH to purchase Solana (SOL) at Binance. The trade indicates a large portfolio rebalance, suggesting a significant institutional shift away from ETH towards other Layer-1 assets such as SOL.

Ethereum touched $1,725 briefly in the rally but backed off to trade at $1,701, just below the top Bollinger Band of $1,672. This indicates that the price is overextended in the near term. In case the pressure to sell increases, ETH can slide to the mid-Bollinger Band level of $1,607 or even to $1,542. 

Momentum indicators remain cautiously optimistic. The MACD histogram turned positive, and the MACD line crossed above the signal line—indicating short-term bullish momentum. However, the MACD remains below zero, reflecting a lack of conviction in the broader uptrend. If ETH fails to close above $1,725, bears may push for $1,600 next.

Read More: Ethereum Foundation Moves 1,000 ETH—Is a Price Crash Coming Next?