Ethereum Price Surging: Will ETH Reach $2,000 Milestone or Crash?

Ethereum (ETH) is exhibiting signs of strength following a subdued few weeks. The market's second-largest cryptocurrency by market capitalization has experienced a new price spike that's drawing traders' attention once again.

As of writing, Ethereum is priced at approximately $1,647.26, with a 2.44% increase in the last 24 hours. It is also up 1.27% in the week. The market cap is currently $198.82 billion, and the 24-hour trade volume is $11.29 billion.

Why is Ethereum Price Rising?

There are two key reasons for Ethereum's recent price surge—whale action and a fresh technical proposal by Vitalik Buterin.

Whale Accumulation Fuels Hope: One of the principal explanations for this new ETH rally is heavy whale action. A prominent ETH holder, commonly known as a whale, has been transferring thousands of tokens from a Bitget hot wallet to a private wallet in recent weeks, according to Lookonchain data.

Source: X

Total, the whale transferred 3,844 ETH worth $6.51 million to their own private wallet all in three weeks. Such an accumulation is confidence in the future price of ETH and usually denotes good sentiment.

Vitalik Buterin's New Proposal: A new proposal from ETH co-founder Vitalik Buterin is the other key driver of the rally. He proposed altering the fundamental way the coin functions. In a forum post, Buterin outlined using RISC-V, which is an open-source processor platform, to make the Ethereum Virtual Machine (EVM) more efficient.

The concept is to optimize the coin to be more efficient, particularly for rollups and scaling. Buterin said this shift could reduce inefficiencies by more than 100 times. Importantly, this change wouldn't affect current smart contracts, and it would open the door for more flexible and efficient development. This proposal, although long-term, has boosted market optimism ahead of Ethereum’s next upgrade, Pectra, coming on May 7.

Ethereum Price Prediction: Will It Hit $2,000?

The chart on TradingView shows a strong breakout from the $1,570–$1,610 price range. The coin is now making higher highs, a classic bullish pattern, and has already broken past the resistance at $1,630, which is now acting as a support level.

Source: TradingView

The following resistance area is between $1,665 and $1,680. Should ETH keep gaining strength, the following targets may be $1,750 and even $2,000. The supporting levels are at $1,630, $1,600, and $1,570.

Technically, if the crypto holds above $1,630 and volume continues to be high, particularly if Bitcoin is also strong, Ethereum might continue to rise. Conversely, if the price goes below support, momentum can lose steam.

Historical indicators also indicate that the last bullish pattern in early March resulted in a good rally. If it follows the same trend, retesting of the $2,000 level within the next 2–3 weeks is not unlikely. However, investors are advised to make their own research before making any investment.

Conclusion

Ethereum is gaining strength once more, and recent whale movements and technical advancements by Vitalik Buterin have given investors confidence. While nothing is guaranteed in the crypto world, all the data that is available shows that the coin to be in a bullish trajectory. How the coin performs in the coming days, especially around the Pectra upgrade and overall health of the market, will show whether it can achieve the target of $2,000

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