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

Ethereum Aims for $2,000 Amid Technical Strength

Ethereum, the second-largest cryptocurrency by market cap, is once again making headlines as its price inches closer to a potential breakout above $1,800. With key technical levels flashing bullish signals and network fundamentals showing increased user activity, many traders are eyeing a potential surge toward the psychologically significant $2,000 level. The market is also closely watching short liquidation metrics, which could trigger up to $317 million in liquidations if Ethereum successfully breaks above critical resistance.

Currently trading near $1,769, Ethereum has seen a modest intraday pullback of approximately 1.5%. Despite this, the coin remains in a bullish pattern on the charts. Traders and analysts alike are debating whether this pullback is simply a retest of support or a signal that the market needs more consolidation before a major move upward.

Price Analysis Suggests Bullish Momentum Is Brewing

Ethereum’s 4-hour price chart reveals that the asset recently broke above a long-standing supply zone, managing to rise past the 38.20% Fibonacci retracement level, which sat near $1,675. Following that, ETH continued upward and broke above the 50% Fibonacci level and the 200-day exponential moving average (EMA) around $1,755. However, it encountered resistance at $1,834, the 61.80% Fibonacci level, and has since experienced some consolidation.

Despite this short-term stall, analysts are viewing the pullback as a healthy technical retest. The price appears to be stabilizing just above the 200 EMA and 50% Fibonacci line, both of which now act as support. This zone is considered crucial for determining the next phase of the trend.

What’s particularly notable is the bullish alignment of the 50 EMA and 100 EMA lines, which are beginning to converge, hinting at a potential crossover. If the 50 EMA crosses above the 200 EMA in what’s known as a “golden crossover,” this could signal a strong continuation of the bullish trend.

MACD and EMAs Reinforce Bullish Setup

Technical indicators continue to support the possibility of a bullish breakout. Both the MACD (Moving Average Convergence Divergence) and the Signal Line are trending upward, indicating strengthening bullish momentum. This is a particularly positive signal for short- to mid-term traders looking for entry points in the market.

If Ethereum can break and hold above $1,834—the 61.80% Fibonacci level—it could pave the way for a rally toward the $2,000 mark. This move would likely be accelerated by algorithmic trading systems and cascading short liquidations that would trigger stop-losses and margin calls, creating rapid upward pressure on the price.

However, it’s also important to keep an eye on the downside. If ETH fails to maintain its current support levels, particularly the 50% Fibonacci retracement near $1,755, the price could drop to retest the earlier resistance-turned-support at $1,675.

Network Activity Surges, Boosting Ethereum Fundamentals

Ethereum’s price action isn’t the only thing flashing bullish signals. On-chain fundamentals are strengthening too. According to recent data from CryptoQuant analyst Carmelo Alemán, Ethereum’s network activity has surged significantly. In just 48 hours—from April 20 to April 22—the number of active addresses on the Ethereum network jumped from 306,211 to 336,336. That’s an increase of nearly 10%.

This uptick in active addresses suggests growing demand and broader usage of Ethereum-based applications. From decentralized finance (DeFi) to NFTs and smart contracts, Ethereum remains the go-to platform for blockchain innovation.

Carmelo also suggests that this network growth could act as a springboard for a wave of new projects launching on Ethereum. As the ecosystem expands, so does the intrinsic demand for ETH tokens, providing a strong foundation for potential long-term price appreciation.

Short Squeeze Ahead? Derivatives Data Points to Liquidation Risk

In addition to strong technical and on-chain signals, Ethereum’s derivatives market is flashing signs of bullish sentiment. According to data from Coinglass, long positions have recently surged to represent nearly 55% of the market. This shift in sentiment is measured by the Long-to-Short Ratio, which recently hit 1.02—up significantly from just 46.3% a few hours earlier.

This bullish tilt in trader behavior indicates rising expectations for an upward move. More notably, the Ethereum liquidation map suggests a key trigger level around $1,800. If Ethereum breaks and holds above this level, it could result in a wave of short liquidations totaling approximately $317.36 million.

These forced buybacks by short sellers would add considerable buying pressure, accelerating the price rally. This scenario creates a positive feedback loop: as prices rise, more shorts get liquidated, further driving prices higher.

Key Support and Resistance Levels to Watch

As Ethereum flirts with a breakout, here are the major technical levels to keep an eye on:

• Support Zone: $1,675 – Strong historical support and the former breakout zone
• Current Support: $1,755 – Aligned with 50% Fibonacci and 200 EMA
• Resistance Level: $1,834 – 61.80% Fibonacci retracement
• Psychological Resistance: $2,000 – Next major target and resistance

If Ethereum clears the $1,834 barrier with conviction, $2,000 becomes the next logical price target. However, a failure to hold support could see ETH revisit earlier consolidation zones.

Broader Market Sentiment and Ethereum’s Role

Ethereum’s performance is especially noteworthy given broader market conditions. While Bitcoin has pulled back slightly below $93,000, Ethereum is showing resilience and relative strength. This divergence underscores Ethereum’s growing role in the crypto space, not just as a digital asset but as the core infrastructure of the Web3 ecosystem.

With major protocols, exchanges, and institutional investors increasingly building on Ethereum, its value proposition is becoming harder to ignore. This trend supports the idea that Ethereum is not just riding the market wave—it’s helping shape it.

FAQs

1. What is the next price target for Ethereum?
The next major price target for Ethereum is $2,000, especially if it successfully breaks above the key resistance level at $1,834.

2. What could trigger Ethereum to break above $1,800?
A combination of bullish technical indicators, increased network activity, and a rise in long positions could act as catalysts for a breakout.

3. What is the significance of the $1,834 level?
It represents the 61.80% Fibonacci retracement level and is a crucial resistance zone. A breakout above this could lead to rapid gains.

4. Could Ethereum face a short squeeze?
Yes, if Ethereum moves above $1,800, up to $317 million in short positions could be liquidated, triggering a potential price spike.

5. Is Ethereum’s network activity important for price movement?
Absolutely. Increased network usage often signals growing demand, which supports higher prices in the long term.