Ethereum: A Hidden Treasure in Crypto
In the fast-changing world of cryptocurrencies, Ethereum (ETH) has been called the most underappreciated one in 17 months. This is happening when ETH is going through a tough market, with supply problems and changing investor feelings. Let’s explore Ethereum’s current state and see if it can go back to being worth $4,000.
Ethereum’s Market Right Now
Ethereum has had some big challenges lately, like the supply going up and more ETH being held on exchanges. In the last 30 days, the supply went up by 66,350 ETH tokens, which is about $138 million at current prices[2]. This increase in supply, without enough demand, is putting downward pressure on Ethereum’s price. Also, the amount of ETH on exchanges went up by 2% in the last week, which could mean more selling and lower prices[2].
But Ethereum is strong. On March 5, 2025, it went from below $2,000 to $2,220, showing it can bounce back from big drops[1]. This recovery was helped by things like the MACD golden crossover, which often means the price is going up[1].
Looking at the Charts and What People Think
From a technical point of view, Ethereum’s price goes up and down a lot, with sudden changes and pullbacks. The Relative Strength Index (RSI) goes from being too low to too high, showing a market that reacts quickly[1][3]. On March 6, 2025, Ethereum went from $2,155 to $2,295, showing how fast the price can change[3].
But even with short-term gains, Ethereum is still going down in the long run, so investors should be careful[3]. The recent increase in trading volume after big ETF outflows shows how investor feelings affect Ethereum’s price[5].
Can Ethereum Go Back to $4,000?
For Ethereum to be worth $4,000 again, a few things need to happen. First, Ethereum has to overcome its current supply and feeling problems. This could mean a big change in the market, like more demand or less ETH on exchanges[2]. Second, Ethereum has 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 lost money often came before 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 a lot of potential, even though it’s going through tough times. The current low price is a chance for long-term investors, but short-term changes and downward pressure should be handled carefully. As Ethereum keeps changing, both in how it works and its basic value, its ability to go back to higher prices will depend on overcoming supply problems and getting more market support.
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Sources:
– CoinStats
– The Currency Analytics
– CoinStats
– FOREX24.PRO
– Blockchain.News