Ethereum has faced a challenging start to the year, shedding 15% from its recent local highs and dipping to a low of $3,157. The altcoin leader’s decline comes amid heightened market volatility and uncertainty, with many investors reevaluating their positions following the recent selloff. However, despite the downturn, on-chain data suggests that underlying investor sentiment remains robust.

With Ethereum trading near critical support levels, the next moves will be pivotal in determining the direction of its price in 2025. As bullish seasonality for altcoins often kicks in during post-halving years, many believe that Ethereum could soon reclaim its upward trajectory, contingent on both market conditions and broader macroeconomic factors.

Ethereum Prepares For Rebound

Ethereum has shown signs of recovery after its recent drop, now attempting to break above the $3,300 level. The altcoin leader has faced considerable challenges, with a 15% decline from its recent highs putting pressure on bullish sentiment. However, key on-chain metrics indicate that Ethereum’s fundamentals remain strong, pointing toward potential growth in the coming months.

While Ethereum’s recent price action may appear underwhelming to some, these accumulation trends provide a bullish underpinning for the asset. Historically, large exchange outflows have preceded significant price rallies, as reduced sell-side liquidity can drive upward momentum when demand increases.

Testing Weekly Demand 

Ethereum is trading at $3,250, reflecting ongoing struggles to break above the $3,300 resistance level. The price action remains tentative as ETH tests critical weekly demand levels. This area has historically provided strong support, and if Ethereum manages to close above the $3,100 mark, it could pave the way for a meaningful rebound in the coming days.

With the broader market sentiment in flux, ETH’s ability to stay above its critical support zones will determine whether a bullish trend emerges or a prolonged consolidation phase persists. Investors are watching closely as ETH attempts to establish its next significant move.

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