Analysis of Ethereum's Price Movement and Potential Rally to $4500

After the recent surge in bullish activity following the approval of the spot Ethereum ETF, it seemed that the bears were completely subdued. However, the attempted surge failed to push prices above $4000, leading to a stagnation at these levels. This resulted in a decrease of over 6% in Ethereum's value, accompanied by a sharp decline in trading volume, which remained below the normal levels. The question arises: Can Ethereum's price initiate a bullish trend and reach $4500?

As the monthly close approaches, the cryptocurrency markets exhibit a sluggish demeanor. The current trading scenario indicates a lack of significant price movements, with both bulls and bears seemingly inactive. This situation raises concerns about a potential decline towards local support levels that could impede any rally progress. Nevertheless, the long-term price analysis hints at a continuation of the bullish trend, but a retracement is essential to attract new liquidity.

The current ETH price hovers above the support range of $3657 to $3706, accompanied by reduced volume and volatility. The prevailing trend favors bearish sentiments, reinforced by technical indicators signaling a 'sell' position. The on-balance volume, which recently surged, points towards a looming bearish divergence, signaling a potential shift towards lower prices.

Conversely, the MACD indicator is on the verge of a bearish crossover, indicating a weakening buying pressure. This suggests a possible breach of the support zone and a test of the lower support level at $3598. A substantial increase in buying volume is anticipated to enter the market, triggering a fresh upward movement beyond $4000, potentially in the initial days of June 2024.