Ethereum Holds Above $2,000 Despite 3% Pullback

Ethereum (ETH) has been maintaining its price above the $2,000 mark, currently trading at approximately $2,054 as of March 25, 2025. This comes after the cryptocurrency reached a peak of $2,104 earlier the same day, demonstrating resilience despite a recent 3% pullback.

Analysts are closely monitoring Ethereum's price movements, with some predicting a potential retracement before a significant upward surge. One analyst, using the pseudonym MAXPAIN, suggests that ETH could pull back by nearly 9% from its recent peak, bringing the price to around $1,900. This area is identified as a key support zone, which could present a buying opportunity for investors.

Trading data indicates two important liquidity zones to watch. The first zone is between $2,135 and $2,106, where approximately $450 million worth of short positions could face liquidation if prices rise above this range. The second zone lies between $1,980 and $1,833, where more than $700 million in long positions could be forced to close, potentially leading to high volatility.

On-chain metrics for Ethereum remain robust, with daily trading volume exceeding $10 billion. This high volume suggests active market participation and healthy liquidity. Additionally, the growing open interest in Ethereum futures contracts indicates that more investors are taking positions in ETH derivatives, which often precedes major price movements.

The long-to-short ratio for Ethereum has reached 1.2287, with long positions now making up 55% of total contracts. This shift indicates growing bullish sentiment among traders. Furthermore, whale activity has been increasing, with data showing nearly half a million ETH purchased by large investors in recent weeks. This accumulation by institutional investors and wealthy individuals often precedes price increases.

Another bullish indicator is the declining supply of ETH on exchanges. Over 1.2 million ETH has moved from exchange wallets into staking contracts and private wallets, suggesting a potential supply squeeze that could drive prices higher. Technical analysis from crypto analyst Gert van Lagen highlights the potential formation of an inverted head-and-shoulders pattern on Ethereum’s weekly chart. This bullish pattern often precedes upward price movements, with a neckline near the $4,000 mark.

Another analyst, Michael van de Poppe, has identified a critical supply zone between $2,100 and $2,150. A breakout above this resistance could potentially trigger a 30% surge, pushing Ethereum toward $2,800. For investors looking to buy Ethereum, the $1,900 area might present an opportunity if the price retraces as some analysts expect. This zone aligns with a value area identified in Time Price Opportunity (TPO) charts and coincides with strong historical support.

The overall outlook for Ethereum remains positive despite potential short-term volatility. With strong support levels, increasing institutional interest, and positive on-chain metrics, many market participants are expecting ETH to eventually test the $3,000 level in the coming weeks. However, it is important to note that these predictions are based on analyst forecasts and may not necessarily materialize.