Despite corrections in US stock markets, Ethereum (ETH)
$1,795 maintains its support level at $1,800. Crypto traders are focusing on technical analysis signals and the movements of large investors. While pessimistic outlooks for 2025 are notable, experts suggest that Ethereum may be forming a potential bottom. The prevailing market sentiment indicates that conditions are preparing for a recovery.
Positive Signals Emerge from the Market
Ethereum’s market share has decreased from 20% in June 2023 to around 8% currently. Although this drop appears negative to some analysts, long-term followers view these levels as opportunities. Particularly, Rekt Capital highlights that ETH is trading in what is known as the “green zone,” a region that historically initiates recoveries. This downturn, in his opinion, carries the potential for history to repeat itself. On the technical analysis front, signs of hope are appearing. Analyst Javon Marks notes a bullish divergence forming in Ethereum charts. This technical signal suggests that the downward momentum is weakening and buyers may once again take the stage. Marks proposes that in a potential recovery, ETH could aim for the $4,000 level, although strong trading volume around $2,100 is essential to trigger such an upward movement.
Large Investor Movements Draw Attention
As Ethereum attempts to hold its technical supports, recent movements by large investors are in the spotlight. According to analyst Ali Martinez, 500,000 ETH were moved to exchanges for liquidation within just 48 hours. Such large-scale transactions can exert pressure on the market and directly influence price movements. Furthermore, the ratio of Ethereum to Bitcoin 
$83,190 has dropped to its lowest levels in five years. This situation is interpreted as a weakening of ETH’s competitive position in the market. However, some market experts argue that such declines can often transform into long-term buying opportunities. Notably, with ETH/BTC ratios at historical lows, some institutional investors may be prompted to reposition themselves. When assessing risk-reward ratios for investors, the likelihood of ETH breaking below the support level of $1,650 in the short term is considered low. Nevertheless, it is also projected that during potential fluctuations, prices could occasionally dip below $1,700. Hence, it is advisable for new market entrants to base their actions on technical and volume-based data rather than short-term speculation.
