Ethereum: A Hidden Treasure in Crypto
In the ever-changing world of cryptocurrencies, Ethereum (ETH) has been called the most underrated in 17 months. This comes when ETH is dealing with a tough market, with supply problems and changing investor feelings. Let’s find out if ETH can go back to its old glory and reach $4,000 again.
Ethereum’s Current Market Situation
Ethereum has had some big challenges lately. In the past 30 days, the number of ETH tokens in circulation has gone up by 66,350, which is about $138 million at today’s prices[2]. This increase in supply, without enough demand, has put downward pressure on Ethereum’s price. Also, the amount of ETH on exchanges has gone up by 2% in the past week, which could mean more selling and lower prices[2].
But Ethereum has shown it can bounce back. On March 5, 2025, ETH went from below $2,000 to $2,220[1]. This shows that Ethereum can recover from big drops.
Technical Analysis and Market Mood
From a technical point of view, Ethereum’s price has been very up and down, with sudden jumps and pullbacks. The Relative Strength Index (RSI) has gone from being too low to too high, showing a very reactive market[1][3]. On March 6, 2025, Ethereum went from $2,155 to $2,295 in one day, showing how fast its price can change[3].
Even though Ethereum has had some short-term gains, it’s still in a downtrend over a longer period. This means investors should be careful[3]. Also, the recent increase in trading volume after big ETF outflows shows how important investor feelings are to Ethereum’s price[5].
Can Ethereum Go Back to $4,000?
For Ethereum to reach $4,000 again, a few things need to happen. First, Ethereum needs to overcome its current supply and mood problems. This could mean a big change in the market, like more demand or less ETH on exchanges[2]. Second, Ethereum needs to break through important barriers, like the $2,635 mark, to show a possible breakout from its current downtrend[4].
In the past, times when many Ethereum holders were losing money have often been followed by big price increases[2]. If big investors start buying ETH now, it could set the stage for a future rally.
The Future for Ethereum
In the end, Ethereum has big challenges, but it also has a lot of potential. The current low price is a chance for long-term investors, but short-term ups and downs and bearish pressure need to be handled carefully. As Ethereum keeps changing, both in how it works and in its basic features, its ability to reach higher prices will depend on overcoming supply problems and getting stronger market support.
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Sources:
– CoinStats
– The Currency Analytics
– CoinStats
– FOREX24.PRO
– Blockchain.News