Ethereum (ETH) is approaching a make-or-break moment, with analysts closely watching whether it can reclaim the critical $2,400 level. After briefly surpassing the $2,000 mark, ETH has slipped back below, currently hovering around $1,980. To spark real confidence in the market, Ethereum needs to surge more than 20%—but is the rally ready to take off?
A Critical Moment for ETH Bulls
Crypto analyst Ali Martinez stresses that Ethereum must conquer the $2,400 resistance level to reignite bullish momentum. Without it, the market could remain in a state of uncertainty.
Meanwhile, Merlijn The Trader remains optimistic, noting that ETH recently broke out of a symmetrical triangle on the 4-hour chart—a classic bullish signal. He even calls this the “most hated rally”, suggesting that a powerful upswing is on the horizon.
Adding fuel to the fire, analyst Ted believes a short squeeze could propel ETH as high as $3,000, forcing bearish traders to cover their positions in a rapid move upward.
Fundamental Factors Supporting a Bullish Case:
- Ethereum reserves on exchanges have plummeted to just 8.97 million ETH—the lowest level since 2015.
- Investors are increasingly moving their ETH to cold wallets, signaling long-term confidence and a potential supply squeeze ahead.
However, not everything is sunshine and rainbows for Ethereum bulls.
Challenges & Key Weaknesses for Ethereum
Ethereum Spot ETFs Are Struggling
- Unlike Bitcoin ETFs, Ethereum-based ETFs have suffered net outflows for 12 consecutive days.
- Institutional investors appear hesitant, suggesting weak demand in the short term.
ETH vs. BTC: Losing Ground Against Its Big Brother
- Ethereum is currently valued at just 0.023 BTC per ETH, the lowest ratio since May 2020.
- This could indicate that ETH is losing market share to Bitcoin, which has dominated the recent crypto rally.
Will Ethereum Break Out or Break Down?
Ethereum is at a pivotal crossroads. While bullish technicals and on-chain data support a rally, weak ETF demand and Bitcoin dominance remain major obstacles.
Key Levels to Watch:
✅ Bullish Breakout: If ETH pushes past $2,400, the next targets are $2,800 – $3,000.
❌ Bearish Rejection: Failure to break resistance could see ETH slip below $1,900, with further downside towards $1,750.
Trading Tip: Keep an eye on Bitcoin’s movement—if BTC rallies, ETH might get dragged up alongside it. Otherwise, Ethereum could remain a sidekick rather than the hero in this bull cycle.
Will ETH regain its strength and join the bulls, or will it continue to lag behind Bitcoin? Stay tuned!
