As global macroeconomic concerns continue to loom over the cryptocurrency markets, Ethereum (ETH) faces a critical juncture. Following a staggering decline of over 51% in the last three months, the price of ETH has dropped from its December peak of over $4,100 to current levels. Analysts suggest that for Ethereum to muster any significant upward momentum, it must first reclaim the pivotal “macro” range above the $2,200 mark.
According to crypto analyst Rekt Capital, achieving this threshold is essential for initiating a reversal from the downward trend. In a recent post, he emphasized the importance of generating a strong enough reaction around these levels to reclaim the macro range of $2,196 to $3,900. Without this reclaim, Ether may struggle to find its footing amid ongoing market pressures.
Interestingly, despite the general downward trend, there are signs of growing whale accumulation. Data shows that large investors, or “whales,” in the 10,000 to 100,000 ETH range have been amassing positions, while smaller traders have been selling off their holdings. This contradicts the common narrative that such large players solely contribute to market downturns.
Market sentiment is currently being shaped by external factors as well, including recent regulatory developments, such as the US Securities and Exchange Commission (SEC) dropping the lawsuit against Ripple. However, analysts warn that until a resolution to the global trade tensions occurs—expected by early April—the crypto markets may remain under pressure.
One bright spot for Ethereum is the recent surge in open interest, which hit an all-time high earlier this month. This indicates that significant traders are positioning themselves for a potential rally, with bullish hopes for a price breakout above $2,400. Additionally, the number of addresses holding at least $100,000 in ETH has seen a noticeable increase, signifying continued interest from affluent investors.
Looking ahead, while the short-term volatility may persist, optimism remains around the long-term outlook of Ethereum and the overall cryptocurrency market. Some predictions suggest that by the end of 2025, ETH could potentially reach prices as high as $6,000, reflecting the market’s resilience and adaptability.
In conclusion, for Ethereum to reclaim its standing and provide a bullish opportunity for investors, it must first overcome the critical resistance level of $2,200. With signs of whale accumulation and potential market shifts on the horizon, ETH’s journey remains one to watch closely.
