TLDR
- Ethereum recently bounced above $2,000, rising 7.8% in 24 hours
- Analysts like CryptoGoos believe ETH may be exiting a “bear trap” pattern
- Exchange netflow data suggests potential selling pressure ahead
- Current price action mirrors 2020 patterns that preceded a major rally
- Technical indicators show mixed signals with RSI at multi-year lows while exchange reserves rise
Ethereum has climbed back above the $2,000 mark, gaining nearly 8% in the past 24 hours. This bounce comes after months of downward pressure that saw the cryptocurrency fall from the $3,000 range in late 2024.
The second-largest cryptocurrency by market cap is showing signs of a potential trend reversal. Several analysts have pointed to patterns suggesting the recent lows could mark the end of a prolonged sell-off.
Crypto analyst CryptoGoos recently shared that Ethereum may be breaking out of what traders call a “bear trap.” This occurs when an asset’s price appears to continue falling, enticing traders to short it, before suddenly reversing upward.
The cryptocurrency has been trading in the low $2,000 range after dropping from $3,000 to as low as $1,800 in recent months. This price action has created what some see as a potential accumulation phase.
Analyst Merlijn The Trader has drawn parallels between ETH’s current behavior and patterns seen in 2020. Back then, similar market conditions preceded a historic price rally.
IS ETHEREUM ABOUT TO SHOCK THE WORLD?
Ethereum 2020 vs. 2025 looks IDENTICAL.
Last time, panic turned into a historic rally.
Now, fear is back. Will $ETH explode again? pic.twitter.com/aBBFDtBDuU
— Merlijn The Trader (@MerlijnTrader) March 18, 2025
Rekt Capital, another market observer, noted that Ethereum is currently trading within a “historical demand area.” They suggested that if ETH can maintain strength at current levels, it might reclaim the $2,196-$3,900 range.
Technical indicators are sending mixed signals about Ethereum’s short-term prospects. The weekly Relative Strength Index (RSI) recently hit a multi-year low, which often precedes trend reversals.
Commentator Ted shared analysis indicating that ETH has broken out of its short-term accumulation phase. He noted that the digital asset has been accumulating since its drop from $3,000 to $1,800.
Warning signs
Not all metrics support a bullish outlook, however. Exchange netflow data shows concerning patterns that have historically preceded price drops.
Since mid-January, four spikes in ETH inflows to exchanges have been recorded. The first three spikes were followed by sharp price declines within days.
The taker buy/sell ratio, which measures market order volumes, has shown bearish sentiment over the past three weeks. While this briefly turned positive during the recent price bounce, it has returned to negative territory.
The current price action follows comments from the Federal Reserve, which signaled two potential rate cuts this year. Economic growth has been slower than expected, creating an uncertain outlook.
Network activity for Ethereum has reached its lowest point of 2025. This reduced on-chain activity raises concerns among some investors about underlying demand.
Daan Crypto Trades revealed he recently converted some long-term Bitcoin holdings into ETH for the “first time in years.” He cited an attractive risk/reward setup in the ETH/BTC trading pair.
At press time, Ethereum trades at $2,029, though it has retraced about 2.36% from its recent high of $2,069. The price continues to move within a broader bearish structure on daily timeframes.
Some analysts predict ETH could target prices as low as $1,750 or below if current patterns continue. Others remain optimistic about a potential breakout toward previous highs.
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