Ethereum has been experiencing a surge in demand over the past few days, fueling a rally in price. This upward momentum has brought Ethereum’s value above the crucial $1,670 level, and the next key resistance level that traders are closely watching is the psychological $2,000 mark. The recent bounce of 20.8% over the past two weeks shows that Ethereum has regained some strength, but the question remains: can the bulls maintain this momentum and push the price to $2,000?

The recent rally has been driven by various positive factors, particularly the upcoming Pectra upgrade, which is expected to complete by April 30, 2025. This upgrade is poised to bring significant technical improvements to the Ethereum network, enhancing its efficiency, usability, and security. These improvements are expected to bolster investor confidence and contribute to the growing demand for Ethereum.

Another critical indicator of Ethereum’s bullish potential is its MVRV (Market Value to Realized Value) pricing band. Currently, the MVRV band is at the $1,367 level, which historically has been a price bottom for Ethereum. For instance, similar levels were tested in 2019 and mid-2022, marking the start of significant price rallies. Therefore, this pricing level provides further optimism for Ethereum’s near-term prospects.

Although Ethereum has bounced back in recent weeks, it’s essential to recognize that its long-term downtrend remains unbroken. The recent price bounce may represent a short-term recovery, but the broader market sentiment continues to reflect caution. However, the technical indicators on the daily chart are showing a bullish picture in the short term. The A/D (Accumulation/Distribution) indicator has been climbing higher throughout April, suggesting that there are more buyers than sellers, which is a positive sign for Ethereum. Additionally, the CMF (Chaikin Money Flow) indicator recently crossed above +0.05, signaling strong capital inflows into the Ethereum market.

Ethereum’s recovery seems promising, but caution is still necessary, especially considering the long-term bearish trend. The $1,904 price level is a significant resistance, and ETH must surpass this level to regain a bullish structure. If Ethereum does manage to break above this resistance, the next target would be the $2,000 level. The $1,850 level could pose some resistance, but a gradual push towards the $2,000 mark is likely, as the liquidation heatmap shows a high density of liquidation levels in the $1,960–$2,000 range. This region is expected to act as a magnetic zone, likely guiding Ethereum towards the $2,000 mark.

In the coming week or two, Ethereum traders should remain watchful for a potential push past $2,000. However, if Ethereum reaches the $2,000 zone, traders should be cautious about a possible bearish reversal. Should Ethereum break past the $2,000–$2.1k range and hold above it, it would be a strong indication that the bulls are regaining control, signaling the start of a new bullish phase.

In conclusion, Ethereum’s recent rally, fueled by positive network upgrades and strong technical indicators, suggests that the path towards $2,000 is within reach. However, given the long-term downtrend and potential resistance levels, traders should approach this rally with caution. If Ethereum continues to exhibit strong demand and bullish momentum, the $2,000 resistance could be tested in the near future. Traders should keep an eye on the $1,850 and $2,000 levels for possible signs of further price action.