- ETH trades near $2,600 resistance, touching the upper Bollinger Band, suggesting bullish momentum but possible overbought risk.
- Volume drops to 8.39K and MVRV Z-Score hits 29.18, showing buyer fatigue and nearing overvaluation without new catalysts.
- ETH must hold above $2,400 or risk decline to $2,200–$1,998; breakout above $2,600 may push price to $2,750–$2,800.
Ethereum has regained bullish momentum in recent weeks, climbing more than 40% in the past fourteen days. On May 13, at press time, ETH was trading at $2,485, a 38.26% gain over the past seven days.
However, it also recorded a slight daily dip of 2.62%. This rally follows a sharp reversal from April lows near $1,600, suggesting short term momentum. The latest trend shows renewed buying interest but also presents signs of hesitation as the price nears key resistance zones.
Price Moves Near Resistance
ETH is trading just under the upper Bollinger Band at $2,592.19, showing short term strength. The price has touched the upper band, a technical signal of bullishness but also of potential overbought conditions.
The Bollinger Bands have begun to compress, suggesting a tightening trading range. Volume has decreased to 8.39K, down from levels seen during the recent breakout. This lower volume hints at possible buyer fatigue and declining momentum.
Meanwhile, the MVRV Z-Score is at 29.18, still below the red zone levels of 37.62. Although not extreme, it shows Ethereum is approaching a historically overvalued level. That could limit further upside without renewed market catalysts.
Momentum Builds Around Key Moving Averages
ETH rebounded above the 50 day moving average, now at $2,177. The 50 day MA is turning upward, suggesting near term bullish sentiment. However, the 200 day MA remains lower at $1,820 and is only beginning to flatten, which indicates that long term recovery may still be forming.
Ethereum saw a peak above $4,000 in January, followed by a gradual decline. The sharp recovery since April has pushed the price into a new short term range. Still, without a surge in participation, the rally could face pressure.
On-Chain Activity Outlook
Daily active addresses have dropped from 700K in January to below 300K in April, with a recent uptick to 213K. This divergence between price and activity implies that recent gains may be speculative interest rather than sustained utility growth.
For May 14, if ETH breaks above the $2,600 level with sufficient buying volume, it could advance toward $2,750 to $2,800. On the other hand, a failure to hold above $2,400 may lead to a decline toward the $2,200 to $2,250 support area, with extended downside risk toward the middle Bollinger Band at $1,998.
