- Ethereum price is stuck in a bear market as the crypto winter continues.
- Technical analysis suggests that the ETH price will rebound soon.
- Its fundamentals are still strong, with transactions and users continuing rising.
Ethereum price has stalled at the critical support level of $2,000, mirroring the performance of Bitcoin and other cryptocurrencies. ETH was trading at $2,010 on Tuesday, down sharply from the all-time high of $4930. Still, there are several reasons why it may rebound in the coming weeks.
Ethereum Price Technical Analysis Points to a Rebound
The weekly chart shows that the ETH price has declined over the past few months and is now at the lower end of the trading range of the Murrey Math Lines tool.
Most importantly, the current price is at its lowest level since August 2024. A closer look shows that this price has now become the right shoulder of the inverted head-and-shoulders pattern. The inverted H&S pattern is one of the most common bullish reversal patterns in technical analysis.
At the same time, the Relative Strength Index (RSI) has moved to the oversold level, its lowest level since April last year. A closer look at Ethereum’s history shows that it always rebounds whenever the RSI moves to the oversold level.
This ETH price prediction is based on the weekly timeframe chart, which often takes time to activate.
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A rebound will likely push its price to the Major Support and Resistance (S&R) pivot point at $2,500. A move above that level will point to more gains, potentially to the strong pivot reverse point at $3,750.
The bullish Ethereum outlook will become invalid if it falls below the key support level at $1,385, its lowest level in April 2021. This price coincides with the strong pivot and reversal level of the Murrey Math Lines tool.
Ethereum is Gearing Towards a Major Privacy Upgrade
Another main reason the ETH price may rebound soon is that developers are working on two major upgrades, which will be released a year after the Fusaka and Pascal upgrades.
This year’s upgrades are Hegota and Glamsterdam. Glamsterdam will focus on improving the network activities and processes, while Hegota will build upon the features.
One major feature expected this year concerns privacy, based on ERC-5564. This upgrade will introduce stealth addresses on Ethereum and EVM chains. Its goal is to improve transaction-level privacy, a major concern in the crypto industry.
These upgrades come at a time when Ethereum’s network is firing on all cylinders, with the number of transactions, active addresses, and fees being in a strong uptrend. Data show that the number of transactions increased by 18% to over 70.2 million, while the number of active addresses rose to 14.6 million.
Ethereum is also leading in key areas such as real-world asset (RWA) tokenization, decentralized finance, and stablecoins.
ETH Has a History of Falling and Rising
The other main catalyst for the ETH price is that Ethereum, like other cryptocurrencies, has a long history of boom and bust.
In a recent report, Tom Lee noted that the Ethereum price has experienced eight major drawdowns since 2018, and in all cases, it has staged a strong V-shaped recovery.
A good example of this is what happened last year when it slumped to $1,385 in April and, within months, soared to a record high.
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