Ethereum has suffered a massive decline, losing over 50% of its value since late December, fueling fear and panic selling across the market. The downturn has led many analysts to question the possibility of an altseason this year, as Ethereum and most altcoins struggle to reclaim key bullish levels. With ETH failing to break above critical resistance zones, investors remain uncertain about its short-term direction, and market sentiment continues to lean bearish.
Despite the pessimism, there are signs of potential recovery. On-chain data from IntoTheBlock shows that $1.8 billion worth of ETH left exchanges last week, marking the largest weekly outflow since December 2022. Large outflows from exchanges typically indicate that investors are moving ETH into private wallets, suggesting long-term accumulation rather than immediate selling. This trend could imply that whales and institutional players are viewing current prices as an opportunity, despite the broader market uncertainty.
If Ethereum can hold key support levels and stabilize, it may be positioned for a strong rebound in the coming weeks. However, for ETH to confirm a true recovery, bulls must reclaim critical resistance zones and sustain buying momentum. Until then, traders remain cautious, watching whether Ethereum will stage a comeback or if further downside is ahead.
The next few weeks will be crucial, as ETH’s ability to hold above key demand zones could determine whether a trend reversal is possible or if continued selling pressure will push prices lower.
Ethereum Bulls Must Hold $2K Support
Ethereum is currently trading above the $2,000 mark, but bulls are finding it difficult to reclaim higher levels amid persistent selling pressure. The market remains in a fragile state, with investors closely watching whether ETH can establish a recovery or continue its downward trajectory.
For a meaningful recovery, ETH must reclaim the $2,350 level, which would set the foundation for a potential rebound. However, the main resistance zone for bulls remains at $2,500—a critical level that has historically acted as a strong barrier. A break and hold above $2,500 would likely spark a recovery rally, shifting momentum back in favor of buyers.
On the flip side, failing to hold $2,000 could extend Ethereum’s downtrend, increasing the likelihood of further declines. Losing this key level would put ETH at risk of testing lower demand zones, potentially leading to more aggressive selling pressure.
Featured image from Dall-E, chart from TradingView
