Ethereum: A Hidden Treasure in the Cryptocurrency World
In the ever-changing world of cryptocurrencies, Ethereum (ETH) has recently been called the most underrated in 17 months. This means that even though it’s going through a tough market right now, many people think it’s worth more than its current price. Let’s explore the current state of Ethereum and see if it can go back to its former glory and reach $4,000 again.
Ethereum’s Current Market Situation
Ethereum has had some big challenges lately. The number of ETH tokens in circulation has gone up by about 66,350 in the past 30 days, which is around $138 million at today’s prices[2]. This increase in supply, combined with not enough demand, has put downward pressure on Ethereum’s price. Also, the amount of ETH on exchanges has gone up by 2% in the past week, which could mean more selling and lower prices[2].
But Ethereum is strong! On March 5, 2025, it went from below $2,000 to $2,220, showing that it can bounce back from big drops[1]. This recovery was helped by something called the MACD golden crossover, which often means a bullish trend (that’s when the price is going up)[1].
Technical Analysis and Market Feelings
From a technical point of view, Ethereum’s price has been going up and down a lot. The Relative Strength Index (RSI) has been going from being too low (oversold) to too high (overbought), which means the market is very reactive[1][3]. On March 6, 2025, Ethereum went from $2,155 to $2,295 in just one day, showing how fast its price can change[3].
But even though Ethereum has had some short-term gains, it’s still going down overall, so investors should be careful[3]. Also, when a lot of people are selling Ethereum ETFs, it can affect the price[5].
Can Ethereum Go Back to $4,000?
For Ethereum to reach $4,000 again, a few things need to happen. First, Ethereum needs to overcome its current supply and market feeling challenges. This could mean more people want to buy Ethereum or less ETH is held on exchanges[2]. Second, Ethereum needs to break through some important price barriers, like the $2,635 mark, which would show that it’s breaking out of its current downtrend[4].
In the past, when a lot of Ethereum holders were losing money, it often led to big price increases[2]. If big investors and “whales” start buying Ethereum now, it could set the stage for a future rally.
What’s Next for Ethereum?
In conclusion, Ethereum has a lot of challenges, but it also has a lot of potential. The current low price is a good opportunity for long-term investors, but short-term volatility and downward pressure need to be handled carefully. As Ethereum keeps changing, both in how it works and in its basic value, its ability to reach higher prices will depend on overcoming supply challenges and getting stronger market support.
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Sources:
– CoinStats
– The Currency Analytics
– CoinStats
– FOREX24.PRO
– Blockchain.News