Will ETHER reclaim $4,800 and $6,000 amid Ethereum’s struggles?

by Ndianabasi Tom

Ether (ETH) has faced significant downward pressure over the past two weeks, raising concerns about its market dominance and demand. The cryptocurrency recently dipped to $2,140 before rebounding to $2,620, but it remains about 37% below its December 2023 high.

Despite weak performance, several factors suggest that ETH could be gearing up for a comeback. Here’s an in-depth look at the challenges ETH faces and the potential catalysts that could drive its price higher.  

Ethereum’s market struggles

• Weak trading volume compared to Solana

Data from DeFi Llama shows that Ethereum’s 30-day trading volume stands at $95 billion, significantly lower than Solana’s $264 billion. This highlights Ethereum’s declining market share in decentralized finance (DeFi) and raises concerns about the network’s competitiveness.

• Declining network fees

Ethereum has traditionally been the most profitable blockchain in terms of network fees, but in 2024, it has slipped to sixth place. The Ethereum network has collected $172 million in fees, trailing behind Tether (USDT), Tron (TRX), Jito, Solana (SOL), and Circle (USDC).

This shift indicates that users are opting for alternative networks with lower fees and faster transaction speeds.

• Ethereum Foundation controversies and token dumps

Another factor affecting ETH’s price is the ongoing controversy surrounding the Ethereum Foundation and concerns about token dumps. Large-scale ETH transactions from the foundation have led to speculation that insiders are cashing out, further dampening investor sentiment.

Read also: BTC, ETH, SOL; Coinbase Stock; and Crypto Unicorn IPOs poised for success in 2025—Bitwise

3 reasons suggesting ETH could be ready for a comeback

1. Spot Ether ETF inflows

One of the most promising signs for Ethereum is the increasing inflows into spot Ether ETFs. Data from SoSoValue shows that these funds have recorded cumu net inflows for six consecutive days, bringing total inflows to $3.16 billion as of 10 February 2025. Notably, the investment vehicle recorded an outflow of $22.46 million on Monday. 

This development goes further to suggest that institutional investors are buying Ether despite its recent struggles. However, ETH ETFs still have a long way to go before catching up with Bitcoin ETFs, which has seen over $40 billion in inflows. If ETH ETF demand continues to rise, it could serve as a strong bullish catalyst for price recovery.

2. Declining ETH balances on crypto exchanges

ETH balances on exchanges have dropped to 15.36 million ETH, down from 16.1 million earlier this year. This marks the lowest level since December 2023, indicating that investors are moving their ETH off exchanges and into cold storage or staking platforms.

This pattern often signals accumulation, as investors tend to withdraw assets from exchanges when they anticipate price appreciation. The increase in over-the-counter (OTC) trading activity further suggests that large institutions are accumulating ETH outside of public exchanges.

 

3. ETH’s price chart mirrors August 2023 bottom

Technical analysis of ETH’s price chart suggests that ETH may be forming a bullish reversal pattern. The weekly chart shows that ETH dropped to $2,140, mirroring its August 2023 low of $2,139. Both declines were accompanied by large bearish volume spikes, but ETH found support at the 200-week moving average.

Additionally, ETH has formed a hammer pattern, which is typically a bullish reversal indicator. If ETH follows a similar recovery pattern as August 2024, it could rebound toward the $4,080 resistance level. A break above this key level could open the door for ETH to reclaim its all-time high of $4,800 and potentially push toward $6,000. 

Read also: Crypto market sees sharp decline: What’s behind the crash?

Is ETH on the verge of a breakout?

While Ethereum has faced challenges from competing blockchains, declining fees, and concerns over weak demand, key indicators suggest that a rebound may be on the horizon.

Institutional interest in spot Ethereum ETFs is rising. Exchange balances are dropping, signaling accumulation. Technical indicators point to a possible bullish reversal. If these trends continue, ETH could be on track to hit new highs in 2025 as earlier reported by Crypto Asset Buyer.

However, traders should keep an eye on resistance levels and broader market conditions before making any major moves. At the time of writing, the second-largest cryptocurrency by market cap is changing hands around $2,711, representing a 2.6% gain in the past 24 hours. 

Read also: Crypto Policy in 2025: What Investors Should Expect  

 

 

---

Ndianabasi Tom A Petroleum Engineering degree holder, Ndianabasi’s interest since 2018 has been study ing the ever-growing field of blockchain and cryptocurrency, keenly evaluating the innovation, exploration, and expansion of this field locally and globally. The founder of Nitadel a media platform, Ndianabasi has been a Writer at Crypto Asset Buyer (CAB) since 2021. When he is not drilling resources in the blockchain and cryptocurrency field, Ndianabasi is singing, reading, watching crime movies, or playing football.