The Ethereum price trend is becoming increasingly complex as it holds above the $2,000 level, signaling heightened volatility. Could a post-retest reversal trigger a surge toward $2,500?
As the crypto market eyes a potential return to a $3 trillion valuation, Ethereum remains firmly above the $2,000 mark. After a recent retest of this key psychological level, ETH is currently trading at $2,954, down 1.28% intraday. However, a lower price rejection and signs of short-term recovery on the 4-hour chart suggest a possible rebound. Will this post-retest rally propel Ethereum toward $2,500?
## Ethereum Price Analysis Suggests Continued Recovery
On the 4-hour chart, Ethereum’s price action shows a reversal rally, breaking out of a consolidation phase. The cryptocurrency climbed from around $2,100, surpassing the 100 EMA line. However, a brief pullback led to a retest of the 100 EMA near the $2,000 support level. Despite this minor dip, the overall trend remains bullish, with upward momentum intact.
The short-term recovery also increases the likelihood of a bullish crossover between the 50 and 100 EMA lines, reinforcing positive sentiment.
## Ethereum ETFs See Neutral Inflows
While Ethereum’s price shows signs of recovery, institutional interest in ETH ETFs has stagnated, reporting net-zero inflows as of March 24. This marks the seventh day of neutral flows since Ethereum ETFs launched in the U.S. Currently, these ETFs hold $7.17 billion in net assets, accounting for 2.85% of Ethereum’s market cap. Cumulative net inflows since inception stand at $2.42 billion.
## Bulls Regain Strength Post-Retest
With short-term recovery and growing optimism, bullish sentiment is rising in Ethereum’s derivatives market. The long/short ratio has shifted in favor of buyers, with long positions now making up 55% of total contracts over the past four hours. This brings the ratio to 1.2287, indicating increased bullish bets. Additionally, Ethereum’s open interest in derivatives has risen by 3.21% to $21.75 billion, accompanied by a positive funding rate of 0.0026%.
## Analysts Predict Further Upside for ETH
As Ethereum shows signs of a rebound, crypto analyst Gert van Lagen has pointed out the potential formation of an inverted head-and-shoulders pattern on the weekly chart. According to his analysis, Ethereum’s bounce from the $1,800-$2,000 support zone suggests the pattern is nearing completion. The short-term recovery could mark the formation of the right shoulder, with the neckline resistance near $4,000.
> *Ethereum [1W] bounces off the ~$1800-$2000 support range while having formed a complex iH&S structure, targeting ~$18k. This support level acted as resistance during the 'head' phase. Now price successfully retested it as support. The Left and Right shoulders are well-aligned."*
> — Gert van Lagen (@GertvanLagen) March 24, 2025
Meanwhile, analyst Michael van de Poppe highlights a critical resistance zone between $2,100 and $2,150. A decisive breakout above this level could trigger a 30% rally, potentially pushing Ethereum toward $2,800.
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