- Ethereum needs to reclaim the $2,150 resistance; breaking it could drive prices to $2,800.
- Institutional ETH holdings rose from 70,000 to 75,000 wallets in March.
- VanEck forecasts Ethereum to reach $6,000 in 2025 amid bullish market expectations.
Following weeks of intense bearish pressure, Ethereum has surged past the psychologically significant $2,000 threshold. Currently trading around $2,032, the asset is showing signs of recovery from a prolonged correction that has dominated its price action. This rebound suggests a potential trend shift as market conditions evolve.
Ethereum’s Path to $2,800 and Beyond
A crypto analyst @CryptoFeras mentioned that Ethereum needs to reclaim $2,150 as a critical resistance level. A breakout at this level would greatly increase the chances of Ethereum moving towards $2,800 and even touching $4,000. If Ethereum fails to hold the momentum over that resistance level, then there is a possibility of bearish retests dragging ETH lower to approximately $1,539.
Short pressure dominated the market for weeks, with investors maintaining a pessimistic outlook. As short sellers began covering their positions, ETH moved into an oversold zone and was able to experience a corrective bounce. While that increase in value comes, ETH remains below $50, $100, and $200 Exponential moving averages, indicating a bearish trend.
Technical indicators are also cautiously optimistic. The relative strength index (RSI) has broken out of oversold territory, pointing to possible bullish momentum. Traders are advised to sit on the lookout because confirmation of a sustained uptrend requires more volume and breaking above a key resistance level near $2,400 at the 50 EMA.
Institutional Accumulation and Market Sentiment
Ethereum has been in a steady downtrend for three months, plummeting over 51% from its December 2024 peak of $4,100, according to CoinMarketCap data. Despite this, institutional investors have continued accumulating ETH. Glassnode reports that the number of wallets holding at least $100,000 worth of ETH grew from 70,000 on March 10 to over 75,000 by March 22.
Nansen’s analyst Nicolai Sondergaard pointed out that Ethereum whales with balances between 10,000 and 100,000 ETH have increased their positions while other smaller holders have been decreasing theirs. As a further signal of ETH trader activity, Ethereum’s open interest also reached an unprecedented level on March 21. Crypto analyst Rekt Capital believes ETH is at risk of losing the bullish structure unless the price reclaims the $2,200 region.
Regulatory shifts have also influenced market dynamics. The U.S. Securities and Exchange Commission’s recent dismissal of its lawsuit against Ripple has been viewed as a positive development for the crypto industry. Meanwhile, investment firm VanEck predicts ETH could peak at $6,000 in 2025, with Bitcoin potentially reaching $180,000.
Read More: Ethereum Faces Uncertainty as Supply Shrinks and Futures Interest Surges