Ethereum’s Ups and Downs: Can It Reach $4,000 Again?
Ethereum, the second-biggest cryptocurrency, has had a tough time lately. Despite this, some experts think Ethereum is undervalued right now, which could be good news for investors. Let’s look at Ethereum’s current situation, its potential for growth, and whether it can reach $4,000 again.
What’s Happening Now?
Ethereum’s price has been going up and down a lot. It recently went up to $2,295 after falling below $2,000[1][3]. But the overall trend is still going down, with more Ethereum being created and more being held on exchanges, which puts pressure on prices[2]. In the last month, there are 66,350 more Ethereum in circulation[2].
Also, there’s been a lot of money taken out of Ethereum ETFs. On March 5, 2025, $63.3 million was taken out of the ETHE fund[5]. This shows that some investors don’t believe in Ethereum right now and are selling their Ethereum.
Why Ethereum Could Grow
Even with these challenges, there are reasons to think Ethereum could do better soon. In the past, when many Ethereum holders were losing money, it often led to big price increases[2]. Analyst Brian Quinlivan from Santiment thinks Ethereum could do well in 2025[2].
Ethereum is also good at changing and improving, like with upgrades like the Pectra upgrade. This could make Ethereum more valuable in the long run[1]. But these upgrades also have their own problems, which could affect when Ethereum’s price goes up[1].
Can Ethereum Reach $4,000 Again?
For Ethereum to get back to $4,000, it needs to overcome some big challenges. First, it needs to break through its current resistance levels and keep going up. This would need a big change in what people think about Ethereum, maybe because more people start using it or because of big technological improvements[3][4].
Second, Ethereum needs to deal with the problem of more Ethereum being created and more being held on exchanges. If this stops, it could help Ethereum’s price and make it easier for Ethereum to grow[2].
Lastly, Ethereum’s success depends on how it handles bigger market changes. Things like the global economy and new rules can have a big effect on cryptocurrency prices, so Ethereum needs to be strong enough to deal with these challenges[2][4].
What’s Next for Ethereum?
In the end, Ethereum has a lot of challenges, but its current low price could be good for long-term investors. To reach $4,000, Ethereum needs to deal with supply problems, make people more positive about it, and be strong in a changing market. As Ethereum keeps changing and improving, it’s a cryptocurrency to watch in the coming months.
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Sources:
– CoinStats
– The Currency Analytics
– FOREX24.PRO
– Blockchain.News
