Analysts Divided on Ethereum's Path as Price Corrects to $2,378 Level

Ethereum is trading at $2,378, reflecting a 5% decline over the past 24 hours after reaching a weekly high of $2,693.

Despite this pullback, the second-largest cryptocurrency remains resilient, surging more than 35% over the past month.

Derivatives data further confirms this surge in market engagement. CoinGlass reports that Ethereum’s trading volume has jumped 135%, highlighting heightened activity. However, open interest in ETH futures has fallen by 5.53%, which may indicate that short-term traders are closing positions or taking profits, even as new momentum quietly builds beneath the surface.

Analysts remain divided on Ethereum’s short-term outlook, though sentiment leans toward cautious optimism. On May 17, crypto analyst Titan of Crypto suggested on X that Ethereum still has “more gas in the tank,” referencing the weekly Stochastic RSI that has yet to reach extreme overbought levels. This, he argues, points to the possibility of the rally extending in the coming weeks.

Conversely, Crypto Patel interprets the recent price movement as a healthy correction. He points out Ethereum’s rejection near the $2,500 level, a significant fair value gap where the price previously moved rapidly, leaving unfilled orders behind. Such gaps draw market attention later as traders revisit them to confirm support or resistance.

Patel predicts that Ethereum may dip further into the $1,930 to $2,100 range, aligning with another fair value gap and a bullish order block near $1,810. Usually formed by institutional or whale activity, these order blocks often serve as strong support zones. Should demand hold in this area, Patel believes Ethereum’s next upward leg could push prices toward the $4,000 to $5,000 range.

Meanwhile, Ethereum was priced at $2,438 last week, showing a 3.5% drop in the previous 24 hours after a week, which was marked by a 34% price increase. Data from Coinglass indicates a 2% decline in open interest, suggesting a reduction in leveraged positions following the recent rapid rally from $1,800 to above $2,500 in just a few days.

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