Ethereum (ETH), the world’s second-largest cryptocurrency by market, has been struggling recently, raising concerns among investors and traders.
Many fear the digital asset could drop below the $2,500 price mark as its price bleeds.
Ethereum’s market recovery hinges on overall market sentiment, institutional investment, network upgrades, and on-chain activity.
The Ethereum Price Surge and Reversal
Ethereum’s price attempted to break through the strong $4,000 resistance level in December. However, it failed twice, leading to a bearish reversal.
This double rejection set the stage for a downward trend, with the digital asset consistently recording lower highs and lows.
At the time of writing, the digital asset was trading at $2,690, down by 1.38% in the last 24 hours, as per market data.
Ethereum’s recent price drop was worsened by overall market sentiment and broader economic issues affecting risk assets.
Ali Martinez’s recent Ethereum price analysis suggests $2,500 is a support level. The data indicates this could mark a key turning point in market trends.
Potential Price Trends to Watch
Ethereum’s next move depends on whether it can break past $2,700. Analysts speculate the price could climb toward $3,000 and beyond if the price rises above this level.
However, if bearish sentiment continues, Ethereum could drop below $2,350. Last week, reports showed that Ethereum is moving within a bullish pennant pattern, which could lead to a breakout toward $3,600.
The 4-hour chart revealed that Ethereum has been moving sideways for the past few weeks.
Traders are currently testing the $2,700 level, but there is a warning sign: the RSI (Relative Strength Index).
This index is close to dropping below the 50% neutral level. If that happens, it would indicate that selling pressure is increasing, which could push the digital asset even lower, possibly toward $2,000 in the coming weeks.
However, Ethereum might start a bigger rally if it breaks key resistance levels. Optimistic projections hint that the price could reach as high as $8,540 in the long run.
The futures market, which plays a big role in Ethereum’s price action, also signals changes. Funding rates are dropping, showing less aggressive trading.
If demand from real buyers increases, the market could stabilize and recover.
Given the current uncertainty around Ethereum, traders should carefully monitor these key support and resistance levels before making decisions.
Beyond Price: Key Upgrade Update Ahead
Even though Ethereum’s price is struggling, important updates are happening in the background.
The Ethereum network is working on new upgrades to improve speed, security, and efficiency.
The Pectra upgrade is expected to go live in April 2025, bringing important improvements to Ethereum.
It combines the earlier planned Prague and Electra updates to make the network faster and more efficient.
One key change is account abstraction, which lets users pay transaction fees with different tokens.
The upgrade will also improve staking, making it easier and more secure for users.
The Dencun upgrade, completed in March 2024, helped lower transaction fees, especially for Layer 2 networks.
Another upgrade, Fusaka, is planned for later in 2025 and will focus on improving Ethereum’s technology.
Developers are still discussing changes, like including the EVM Object Format. These updates will make Ethereum faster, cheaper, and easier to use in the future.
