Will Ethereum have a chance to rebound with industry heavyweights "actively supporting" it?
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Will Ethereum have a chance to rebound with industry heavyweights "actively supporting" it?
Market analysts expect Ethereum to consolidate in a wide range between $2,000 and $2,500, with this sideways movement likely to persist until a breakout signal emerges, indicating the next major trend.
Navigating Web3 tides with focused insightsThe recent downturn in Ethereum has truly been painful for many investors.
A recent report from Matrixport points out that global search interest in Ethereum has approached a historic low, which in the past often signaled further significant price declines. Reduced on-chain activity, declining total value locked (TVL), and market speculation around a potential U.S. strategic digital asset reserve have collectively weakened demand for Ethereum's native token, ETH. The current market environment clearly shows that weak demand for ETH is an undeniable reality.
Nevertheless, there are still strong believers in the Ethereum ecosystem within the industry. Du Jun, founder of ABCDE, publicly stated on March 3 that despite accumulating losses exceeding $20 million from dollar-cost averaging into Ethereum over the past year, he remains confident in its long-term value and is even considering selling other assets to lower his average cost basis for ETH holdings.
Nick Tomaino, founder of prominent investment firm 1confirmation, went further on social media, stating they are “doubling down on ETH” because, in his view, Ethereum is one of only two ecosystems in the crypto space that are “credibly neutral and sufficiently decentralized in ownership,” possessing unique long-term “social scalability.”
Facing persistent market pessimism alongside this high-profile “against-the-tide” support, what lies ahead for Ethereum?
Historical Cycle Comparison: Is History Repeating Itself?
Some market observers note that Ethereum’s recent performance resembles bear market patterns seen in 2018 and 2022. Anonymous trader 5.0 Inverted stated that Ethereum is “following the 2018 and 2022 bear market price trajectories.” The chart below shows that Ethereum fell by 82.71% in 2018 and 68.29% in 2022, continuing to decline throughout the second half of those years.
Another trader noted that in the previous cycle, Ethereum dropped 60% from $4,200 to $1,800, then staged a powerful 170% rebound over the following months, eventually reaching a new all-time high of $4,800. Drawing lessons from 2021, Ethereum may continue to remain weak through the end of the year before staging a recovery rally.
Technical Analysis: Mixed Bullish and Bearish Signals
At the time of writing, Ethereum has rebounded from lows below $2,000 to around $2,240, finding strong support near the $2,000 level—a zone that aligns with the key ICT Optimal Trade Entry (OTE) level closely watched by traders—and temporarily halting downward momentum.
On the hourly chart, ETH price action shows mixed signals. After briefly breaking above the local resistance at $2,262, prices began to retreat, suggesting bears could push prices lower in the short term.
The daily chart, however, offers more positive signs. Ethereum has started to recover after bouncing from the $2,076 support level. Still, no clear reversal signal has emerged yet in the medium term. Traders should closely monitor the critical $2,000 zone. A breakdown below this level could quickly lead to a test of the $1,750 region.
Market analysts expect Ethereum to trade in a wide range between $2,000 and $2,500, with this consolidation likely to persist until a breakout signal emerges, heralding the next major move. Both bulls and bears are closely watching these key levels.
If Ethereum can hold above $2,000 and build momentum, the current phase could evolve into a new bullish wave. Chart analyst Ali Martinez believes the most critical resistance lies at the $2,400 mark, where over 2.41 million investors purchased 62.68 million ETH. For analysts, breaking above this level could “pave the way for a rebound toward $3,000.”
CryptoQuant analyst MACD notes that Ethereum’s MVRV ratio has fallen below 1, placing it in historically undervalued territory. Historically, such levels have preceded substantial price increases during prior bull cycles. Additionally, MACD highlights a sharp rise in Ethereum accumulation addresses—wallets consistently receiving ETH but never withdrawing—indicating institutional investors are building positions during the current market downturn.
However, MACD also acknowledges that broader macroeconomic conditions, such as U.S. liquidity and monetary policy, may continue to exert downward pressure on asset prices. Market sentiment has not fully turned optimistic, and investors should remain cautious, awaiting clearer confirmation signals.
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