Ethereum In A Bull Flag: Massive ETH Withdrawals Ahead Of Super Cycle To $4,900?

Ethereum is a mixed bag when writing. Even so, the uptrend remains for now. While bulls might be loading up, buying on every correction, traders should be wary of what happens at the $3,700 level. This line is an immediate support zone that bulls must reject for uptrend continuation. Considering the formation in the daily chart, the path of least resistance is upwards, but buyers must convincingly close above $4,000. If not, ETH prices might consolidate horizontally in continuation of last week’s formation.

The general inactivity in price action means bulls seem to be slowing down. For now, Ethereum is stable in the past 24 hours but down 3% in the past week. Since prices are quite literally stuck, engagement is also low. At the time of writing, the average trading volume in the last 24 hours is around $14 billion, which is way lower than expected.

Nonetheless, traders are closely monitoring fundamental events. The following Ethereum developments are noteworthy:

• Following a hack, Linea, an Ethereum layer-2 platform, chose to shut down the sequencer to prevent more losses. Critics are now raining down on its developers, claiming it is not a blockchain but a centralized scaling solution.
• Analysts think ETH bulls are preparing for a super-cycle in the coming weeks. As the United States SEC prepares to approve spot ETFs, over 800,000 ETH have been withdrawn from top exchanges.

Ethereum Price Analysis

 ETH/USD prices are consolidating inside a wedge, printing a bull flag.

Still, even with the lower lows, the uptrend remains.

Optimistic bulls can look for entries to buy on dips above $3,700.

However, as mentioned earlier, the accumulation might provide a spring for a decisive breakout above $4,000.

This development will align with the May 20 bull bar that continues to shape the current price action.

A close in either direction ($3,700 or $4,100) is crucial for trend definition.

If bulls succeed, Ethereum would quickly explode to as high as $4,900.