TLDR
- Ethereum price formed a base above $1,820 and started a recovery wave, breaking above $1,880 and $1,920 resistance levels
- ETH is currently trading around $2,032, facing key resistance at $2,020-$2,040 and $2,150 levels
- Institutional ETH holdings increased from 70,000 to 75,000 wallets in March despite a 51% drop from December peak
- Technical indicators show cautious optimism with RSI breaking out of oversold territory
- VanEck forecasts Ethereum could reach $6,000 in 2025 amid improving market sentiment
Ethereum has surged past the key $2,000 threshold after weeks of bearish market conditions. The second-largest cryptocurrency by market cap is now trading around $2,032, showing early signs of a potential recovery phase.
The price formed a solid base above the $1,820 level and started moving upward. Bulls pushed ETH above several resistance levels including $1,880 and $1,920 in recent trading sessions.
This upward movement comes after a three-month downtrend that saw ETH lose over 51% from its December 2024 peak of $4,100. The recovery suggests a possible shift in market sentiment as conditions start to evolve.
Technical Analysis Points to Key Resistance Levels
ETH is currently trading below $1,950 and the 100-hourly Simple Moving Average. A short-term rising channel has formed with support at $1,980 on the hourly chart.
The cryptocurrency faces major resistance near the $2,020 level. Additional resistance sits at $2,040, which represents the 76.4% Fibonacci retracement level of the recent downward move.
If Ethereum breaks above $2,040, the price could potentially target the $2,120 resistance level. Any move above this could open the path toward $2,150 or even $2,250 in the near term.
Crypto analyst @CryptoFeras highlights that reclaiming the $2,150 level is critical. A breakout there would increase chances of ETH moving toward $2,800 and possibly touching $4,000.
#Etherum $ETH needs to reclaim 2150$ area as a support again, otherwise we are just heading towards another bearish retest.
a successful reclaim can ultra send it towards 2.8 & 4k as well. but it needs to happen first, otherwise 1539$ is next$ethusd #ethusdt #Altcoins pic.twitter.com/9VAyYw9WAN
— Crypto Feras ๎จ (@CryptoFeras) March 24, 2025
Institutional Interest Remains Strong
Despite the recent price decline, institutional interest in Ethereum has remained robust. Glassnode data shows that wallets holding at least $100,000 worth of ETH grew from 70,000 on March 10 to over 75,000 by March 22.
Nansen analyst Nicolai Sondergaard noted that Ethereum whales with balances between 10,000 and 100,000 ETH have increased their positions. This accumulation has occurred while smaller holders have been reducing their stakes.
As a further indicator of trader activity, Ethereum’s open interest reached an all-time high on March 21. This suggests growing market participation despite recent price weakness.
If Ethereum fails to clear the $2,040 resistance, another decline could begin. Initial support is near the $1,980 level, with major support at $1,950.
A drop below $1,950 could push the price toward $1,880. Further losses might send ETH toward $1,850 or even the $1,800 support level in the near term.
Crypto analyst Rekt Capital believes ETH risks losing its bullish structure unless prices reclaim the $2,200 region. This aligns with other technical assessments of key resistance levels.
Short sellers dominated the market in recent weeks, maintaining a bearish outlook. As these positions get covered, ETH moved into an oversold zone and experienced a corrective bounce.
Positive Regulatory Developments
Recent regulatory shifts have influenced market dynamics. The U.S. Securities and Exchange Commission’s dismissal of its lawsuit against Ripple has been viewed positively for the crypto industry.
This regulatory development may have contributed to improving sentiment across the crypto market. Ethereum, as a major cryptocurrency, stands to benefit from any easing of regulatory pressures.
Investment firm VanEck remains optimistic about Ethereum’s prospects. They predict ETH could peak at $6,000 in 2025, with Bitcoin potentially reaching $180,000 during the same period.
Technical indicators show cautious optimism. The Relative Strength Index (RSI) has broken out of oversold territory, pointing to possible building momentum for bulls.
However, traders should note that ETH remains below the 50, 100, and 200 Exponential Moving Averages. This continues to indicate an overall bearish trend on longer timeframes.
Confirmation of any sustained uptrend would require increased trading volume. Breaking above the key resistance level near $2,400 at the 50 EMA would also be an important technical signal.
The hourly MACD for ETH/USD is gaining momentum in the bullish zone. The hourly RSI is now above the 50 zone, indicating growing short-term buying pressure.
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