- Despite Ethereum’s downward trend, key metrics suggest potential recovery if $4,000 resistance is breached in upcoming weeks.
- Ethereum faces bearish pressure as large holders increase exchange deposits, but technical analysis hints at a bullish reversal soon.
Ethereum’s price has fallen by 19.11% over the past month, with its value sitting at $2,695 as of this writing. This decline follows a local peak of $3,400 reached one week ago. Despite these numbers, opinions among market observers remain divided.
Crypto analyst Ali Martinez recently shared an optimistic view, suggesting that Ethereum could be preparing for a substantial upward movement.
#Ethereum $ETH is gearing up for a major move! A breakout above $4,000 could pave the way for a rally toward $7,400, $10,000, or even $14,000! pic.twitter.com/9hmkSKNpKf
— Ali (@ali_charts) February 6, 2025
According to Martinez, if Ethereum breaches the $4,000 resistance level, it might trigger a significant rally. In his projections, ETH could climb toward $7,400, $10,000, and eventually reach $14,000. However, these targets are long-term and unlikely to materialize in the short term.
Contrasting this outlook, ETHNews analysis paints a less favorable picture. The platform highlights several indicators pointing to ongoing downward pressure on Ethereum. For instance, altcoin’s Sharpe Ratio (90 days) has dipped into negative territory, currently standing at -0.266.
Source: Messari
A declining ratio suggests that Ethereum’s risk-adjusted returns have underperformed compared to risk-free assets, making it less appealing to traders.
Source: CryptoQuant
While some analysts like Martinez envision a bullish future for Ethereum, current data reveals strong headwinds. Traders should carefully consider both perspectives before making decisions. Market conditions remain fluid, and only time will reveal whether Ethereum can reverse its recent trend or continue along its current path.
