Ethereum price is attempting to stabilize after dipping below $1,600. Long-term holders have entered capitulation territory for the first time in months.
Meanwhile, a spike in user activity and on-chain whale movement suggests a significant shift.
Analysts believe ETH price could be approaching a turning point that may trigger a long-awaited breakout.
Analyst Forecast: $5,000 by May 2025 After Final Shakeout
Crypto analyst CryptoELITES has projected a bullish roadmap for Ethereum price, forecasting a $5,000 price target by May 2025.
The analyst highlighted a historical accumulation pattern followed by a steep expansion phase.
Ethereum has rebounded multiple times near the $1,800 support, forming a strong foundation.
According to CryptoELITES, the ongoing decline is Ethereum final shakeout before the price enters a parabolic expansion.
The projected path aligns with previous cycles where similar consolidation zones preceded explosive breakouts.
If this roadmap plays out, ETH could rally significantly once resistance is cleared.
The chart split the structure into a bottoming phase followed by projected upside momentum.
By identifying Ethereum potential to transition into a new bullish phase, CryptoELITES highlighted a long-term opportunity despite short-term volatility.
On-Chain Metrics and Strategic Whale Movement
Consequently, Ethereum LTH-NUPL indicator has dipped into capitulation, reflecting growing losses among long-term holders.
Historically, this metric turning red signals the end of a bearish phase. It indicates that experienced holders are surrendering, often creating a setup for trend reversals.
Meanwhile, the MVRV Long/Short Difference has plunged to -22.26%, showing that ETH price is significantly undervalued.
This level is typically linked to maximum pain and has marked ideal accumulation zones in past cycles.
Such conditions create opportunities for strategic investors to reposition.
Large transactions have also intensified. Over 530,000 ETH was transferred between whale wallets last week, pointing to possible rebalancing.
A notable event was the sale of 10,702 ETH by a dormant 2016-era wallet.
The wallet was previously sold only during major corrections, hinting at an effort to trigger panic before recovery.
User Activity Defies Bearish Sentiment
Despite the falling price, Ethereum network activity has surged. Daily active addresses reached 573,000, and transaction volume hit 1.42 million on April 9.
This increased activity during market stress suggests a rise in network utility and interest at lower valuations.
Notably, these metrics indicate that Ethereum is still drawing attention even during downturns.
The uptick in transactions points to greater adoption, possibly from new users entering at perceived bargain levels.
It reflects confidence in Ethereum’s long-term prospects beyond short-term trading. The case of user engagement supports the establishment of reversal.
It can be noted that seasonal increase corresponds to macro accumulation phases when prices are low.
The correlation of the user interest and undervaluation metrics indicates that the ETH might be in the process of developing a bottom.
$1.3K–$1.6K Range as a Generational Entry
Additionally, TedPillows offered a clear description of how it currently looks with the Ethereum market.
He broke it down into three different stages, which are accumulation, manipulation, and expansion.
According to the analysis, the top altcoin price has exited the accumulation zone and is now undergoing a final manipulation phase.
He highlighted the $1.3K to $1.6K range as a generational opportunity, calling current prices a bargain.
This belief is backed by the fact that ETH is now trading below its realized price for the first time since March 2020. Such events historically occur at cycle lows.
To support this view, Ted also highlighted two factors, the drive towards institutional adoption and what he considered as a growing market capitalization of stablecoins.
Thus, there is bearish pressure at the best possible level, and this is another typical sign of a bottoming formation.
When they are put together, his outlook aligns with the notion that ETH is about to swing to a bullish trend.
