- Ethereum shows signs of recovery after a decline, but it's not yet time to celebrate victory.
- Momentum signals suggest that bulls may be preparing to take action.
There is no doubt - Ethereum (ETH) is rising again after dropping below $1,400. But don't confuse this recovery with a trend reversal.
According to TinTucBitcoin, thanks to some accumulation from large whales, Ethereum is coming back from the brink.
However, the lack of momentum from buyers means the risk of capital dump is not completely gone. In summary: ETH is not dead, but not ready to sprint yet.
Nevertheless, initial recovery signs are emerging. The bulls may not have exploded yet, but they are certainly warming up.
Bulls may be about to run
Looking closely at the weekly chart, Ethereum is outperforming, achieving double the growth compared to BTC.
This indicates that capital is being rotated into ETH, especially as BTC approaches the critical supply zone at $96K - where resistance could limit the upward momentum.
Source: CoinMarketCap
Moreover, the RSI on the daily ETH/BTC chart is rising after being in the oversold zone throughout April, signaling a potential momentum shift.
These technical indicators support TinTucBitcoin's argument.
With additional accumulation from large whales, Ethereum breaking the $1,900 resistance is becoming increasingly feasible.
Ethereum's restart
The positive outlook for Ethereum has been significantly enhanced. Data from glassnode shows a strong increase in First-Time Buyers, meaning new wallets buying ETH for the first time since February.
Additionally, Momentum Buyers - short-term traders participating in price increases - are intensifying their activity this week. When these two groups combine, it often marks the beginning of a structural reversal.
Source: glassnode
But don't be too optimistic - caution remains. As TinTucBitcoin pointed out, the absence of a strong Ethereum surge means that capital dump risk is still present.
Until new buyers enter at the critical $1,900 level, breaking this resistance is not easy.
So, while on-chain data and capital rotation suggest a recovery towards $1,900, selling pressure could strongly obstruct this level.
Watch the volume indicators closely around $1,900 - this could be the key point for Ethereum's next big move.
