Ethereum breaks key levels but struggles at $1,800. Could growing network activity and increasing long positions spark a move toward $2,000?

As the crypto market recovery pauses, Bitcoin drops below $93,000, while Ethereum continues to struggle below the $1,800 level. Currently, Ethereum is trading at $1,769, showing an intraday pullback of nearly 1.5%.

While Ethereum continues to face resistance, optimistic traders anticipate a post-retest bounce. Could this recovery push the price past the $2,000 mark? Let’s find out.

Ethereum Price Analysis 

On the 4-hour price chart, Ethereum’s trend showcases a bullish breakout from a long-standing supply zone, surpassing the 38.20% Fibonacci level near $1,675.

Following this breakout, Ethereum rallied past the 50% Fibonacci level and the 200 EMA line near $1,755. However, the uptrend failed to maintain momentum above the $1,834 mark, resulting in short-term consolidation and a minor pullback.

This current pullback may be a potential retest of the 200 EMA line and the 50% Fibonacci level. Notably, the recovery has positively influenced the 50 and 100 EMA lines, hinting at a possible bullish crossover.

Furthermore, the bullish recovery has extended the uptrend in the MACD and Signal lines, signaling strong bullish momentum. As a result, technical indicators support the likelihood of a post-retest reversal in Ethereum’s price.

Based on the Fibonacci levels, a successful post-retest reversal that breaks above the 61.80% Fibonacci retracement ($1,834) could open the door for Ethereum to reach $2,000. Such upward momentum would also increase the chances of a golden crossover between the 50 and 200 EMA lines—a strong bullish signal.

Conversely, if Ethereum fails to hold above the 50% Fibonacci level, the price could retrace further to test the $1,675 support-turned-resistance zone.

Analyst Signals Major Ecosystem Boost Incoming for Ethereum

Amid Ethereum’s recent bullish recovery, a new analysis by Carmelo Alemán, an analyst at CryptoQuant, highlights a major boost in network activity. He notes a sharp increase in active Ethereum addresses from 306,211 to 336,336 in just 48 hours.

This represents a nearly 10% surge between April 20 and April 22. The analyst also notes overall growth in Ethereum active addresses alongside the broader market recovery.

Carmelo projects a potential expansion in the broader Ethereum ecosystem, which could serve as a launchpad for multiple projects built on Ethereum. As the ecosystem grows, demand for ETH is expected to rise, potentially driving prices higher.

Bullish Traders Bet Big on Ethereum Breakout Rally

As price action analysis suggests a potential rebound, bullish sentiment in Ethereum’s derivatives market continues to grow. According to Coinglass data, long positions in the derivatives market are nearing 55%.

Based on Coinglass’s Long-to-Short Ratio chart, long positions now account for 54.98%, driving the ratio to 1.02. This marks a notable increase over the past three hours, up from 46.3%.

With renewed optimism for a breakout rally, derivatives traders are betting big on Ethereum. According to the Ethereum exchange liquidation map, a breakout above $1,800 could lead to significant short liquidations.

The data indicates a cumulative short-liquidation potential of $317.36 million near the $1,809.60 level.