Ethereum has settled into a defined trading range after a sharp selloff, with on-chain and derivatives data pointing to fresh accumulation. A classic bullish divergence has emerged on the price chart: the Relative Strength Index (RSI) is forming higher lows while price tests lower levels—often a precursor to a trend reversal.
$2,275: The Short-Term Line in the Sand
Analyst Symba notes that Ethereum needs to reclaim the $2,275 level to restart its short-term rally. A failure to break decisively could see a pullback toward the $2,200–$2,150 zone. If bulls hold above $2,275, the next targets are $2,340 and the main supply zone at $2,400. Conversely, sustained selling pressure may attract buyers below $2,150.
Symba highlights that rising open interest alongside sideways price action signals accumulation, not distribution. Traders are building positions during dips rather than exiting.
Mid- to Long-Term Sideways Structure
On higher timeframes, ETH repeatedly faces rejection at the $2,300–$2,350 resistance. Analyst Michaël van de Poppe points out that despite persistent selling at this zone, Ethereum continues to print higher lows—a sign that resistance could weaken over time, eventually enabling a breakout. The next major resistance band sits between $2,900 and $3,000, but only after a sustained hold above $2,350.
Accumulation Signs After Selloff
Analyst CJ observes that Ethereum has stopped making aggressively lower lows and is now trading in a defined range. Key support lies between $2,100 and $2,150; a breakdown could shift focus to the $1,750–$1,800 area. Yet as long as ETH stays above $2,100, the market appears to be accumulating rather than entering a downward spiral.
Derivatives Market Quietly Building Positions
Spot and derivatives data show a gradual increase in new positions. A notable jump in spot volumes after the selloff suggests renewed buyer interest during price dips. Leverage and open interest have risen, but no renewed wave of selling has materialized. Prices continue to consolidate in a tight range, aligning with accumulation dynamics.
Seasonal Volatility Ahead
Market observers warn that May historically brings heightened two-way volatility for Ethereum. With the asset trading near critical resistance, an uptick in price swings is expected in the near term. A high-volume breakout could open the door to new highs, while a stalled rally may reintroduce downside risk.