TLDR
- The price of ETH made a significant leap, crossing over the $2,000 threshold, marking an impressive 7.8% jump within just 24 hours.
- Large holders, often called whales, have been on a buying spree, adding over 400,000 ETH to their holdings within a single day.
- From a technical lens, Ethereum has made a bullish move. Breaking out of an ascending triangle, it's set sights on hitting a target price of $2,142.
- Analysis of blockchain activity points to potential selling pressure, with exchange inflow patterns suggesting a possible downturn.
- The Ethereum Foundation announced that the Holesky testnet would be retired, with its role being taken over by the Hoodi testnet.
Ethereum, a leading digital currency by market cap, has seen a significant price hike, rising above $2,000 after prolonged downward trends. Currently, it's up over 7.8% in 24 hours, trading around $2,029.
Following a hefty sell-off since December 2024, Ethereum found itself teetering around the low $2,000s. This recent climb has sparked debates among traders about whether this marks a true reversal or a mere temporary rally.
Data from the blockchain shows a trend of accumulating ETH among major investors. These accounts, which don't exhibit outgoing transfers, increased their holdings by over 400,000 ETH in just one day, particularly on March 12, when inflows peaked at 345,210 ETH.
The scale of this buying frenzy is noteworthy. In the first three months of 2025 alone, these key players have amassed 4.73 million ETH, compared to 5.8 million amassed over the previous year. This suggests they find the current price levels appealing, despite being far from Ethereum’s all-time high.
Technical Analysis
From a technical perspective, Ethereum has confirmed a bullish breakout from an ascending triangle—a pattern typically heralding the continuation of an uptrend. This involves progressively higher lows against steady resistance.
Following a dip below $2,000 on March 10, ETH began forming higher lows, repeatedly testing the $1,950 resistance before overcoming it. This breakout was preceded by a positive divergence on the RSI, hinting at weakening bearish pressure and potential upward reversal.
With this breakout, Ethereum's immediate chart target is roughly $2,142, nearly 5% above current levels. However, the 100-day EMA acts as a current ceiling around $2,050. Converting this EMA into support is crucial for achieving $2,142.
Short-term price outlooks suggest Ethereum could aim for the critical $2,200 resistance. Breaking above late February’s declining trendline is pivotal. The upward trajectory of indicators like the RSI and MACD suggest waning bearishness.
Maintaining the declining trendline as support could signal movements towards $2,070, then $2,200. Failing at $2,070 might push prices back to the $1,818 support.
Several leading crypto analysts have chimed in with their projections. on Ethereum’s Crypto analyst CryptoGoos speculates that Ethereum might be wrapping up a bear trap—a misleading signal suggesting further price drops, enticing shorts, before a reversal.
Another analyst, Merlijn The Trader, drew parallels to patterns observed in 2020, noting that back then, what started as panic morphed into a historic rally.
IS ETHEREUM ABOUT TO SHOCK THE WORLD?
Ethereum 2020 vs. 2025 looks IDENTICAL.
Back then, initial panic transitioned to a historic rally.
Now, fear is back. Will $ETH explode again? pic.twitter.com/aBBFDtBDuU
— Merlijn The Trader (@MerlijnTrader) March 18, 2025
Investor Rekt Capital mentioned Ethereum's trade in a 'historical demand area.' They emphasized that a strong enough reaction could allow ETH to reclaim the $2,196-$3,900 range.
Ethereum has entered this historical demand zone (light blue).
If it reacts robustly, ETH could again target the $2,196-$3,900 Macro Range (black). #ETH Accomplishing this before March ends could redefine the sub-$2,200 spectrum.
Despite encouraging metrics, caution remains needed. Exchange netflows—tracking ETH movements on and off exchanges—analyze buying versus selling pressures. Higher inflows often denote greater selling momentum, whereas outflows suggest accumulation. pic.twitter.com/Fj4JYeGcBq
— Rekt Capital (@rektcapital) March 19, 2025
Since January, there have been four major inflow spikes, with peak moments on January 24, February 19, March 3, and March 14. Each preceding three were followed by sharp downturns, implying another dip could be on the horizon.
The taker buy/sell ratio, measuring market buy orders against sells in perpetual trades, has shown a bearish stance recently. Though improvements emerged, they faded quickly, with the 7-day EMA for the ratio souring again.
In Ethereum news, the foundation unveiled on March 19 the phasing out of Holesky due to 'enduring inactivity leaks.' Its successor, Hoodi, activated earlier this week.
In other Ethereum Developers are prepping the Pectra upgrade for Hoodi slated for March 26, potentially advancing to the mainnet 30 days later, pending successful trials. Pectra will introduce new Ethereum enhancements, including elevated staking limits and account recovery options.
As Ethereum navigates these varied signals, traders and investors vigilantly assess price moves and on-chain indicators to anticipate its next big move.
Maisie, a seasoned reporter in Crypto & Financial realms, has contributed to Moneycheck.com, level-up-casino-app.com, Computing.net, and leads as Editor in Chief at Blockfresh.com.
