- Ethereum is nearing a critical resistance level at $1,895.50, where 1.64 million ETH is concentrated, creating potential selling pressure from holders who bought in during the November 2024 rally.
- Increased trading volume, rising on-chain activity, and mixed technical signals suggest heightened volatility and the possibility of either a bullish breakout or a price correction.
As Ethereum (ETH) flirts with the $1,895.50 mark, traders are watching closely. A significant supply overhead at this level—housing 1.64 million ETH—has emerged as a major resistance point, according to Glassnode. This cluster represents holders who entered the market during the November 2024 rally, and they may now be tempted to sell as prices approach their cost basis.
A Key Resistance Zone With History
On April 23, 2025, ETH traded at $1,892, just shy of the critical resistance. The day before, it stood at $1,890, highlighting the narrow range within which price action is consolidating. This resistance zone is not just psychological—it’s supported by hard data. The 1.64 million ETH at $1,895.50 indicates heavy seller potential, which could stall upward momentum unless broken decisively.
Trading Activity Surges
The spike in trading volume to 24.3 million ETH—well above the monthly average of 18.5 million ETH—suggests that the market is heating up. ETH/BTC also nudged upward from 0.053 to 0.054 BTC, while ETH/USDT remained stable. Meanwhile, on-chain activity reflected growing interest, with active addresses jumping from 420,000 to 450,000 in just 24 hours.
Technical Indicators Point to Volatility
The Relative Strength Index (RSI) reached 68, indicating that ETH is nearing overbought conditions. The MACD’s bullish crossover hints at further gains, but the looming supply overhead may suppress any breakout. Additionally, the widening Bollinger Bands suggest increasing volatility, which traders must factor into their short-term strategies.
The $1,895.50 level is pivotal. A breakout could validate bullish sentiment and potentially trigger a rally, while rejection might signal a retracement. With no major AI-related market catalysts reported as of now, price movement is likely to be driven purely by technicals and trading sentiment.
Ethereum’s approach to $1,895.50 could define its near-term trajectory. The increased trading activity and on-chain engagement underline the market’s fixation on this resistance. For traders, this is a make-or-break moment: either ETH pushes through and sustains a bullish trend, or it succumbs to selling pressure from the November 2024 cohort. Stay alert, monitor volume shifts, and brace for possible volatility.
