Ethereum Surges 7.8% as Analysts Predict Potential Rally

Ethereum, the second-largest cryptocurrency by market cap, has been trading in the low $2,000 range following a significant sell-off since December 2024. Analysts are now suggesting that Ethereum may be on the verge of breaking free from a potential bear trap, a false signal that tricks traders into shorting an asset just before its price reverses and rises.

Crypto analyst CryptoGoos recently shared an Ethereum weekly chart on X, indicating that the cryptocurrency could be nearing the end of such a trap. The chart illustrated a potential trend reversal after months of continuous sell-offs. CryptoGoos predicted that Ethereum could surge past its recent range high of $4,000, potentially reaching a new all-time high of $10,000.

Merlijn The Trader, another crypto analyst, echoed CryptoGoos’ sentiment, noting similarities between Ethereum’s current price action and patterns observed in 2020. He highlighted that the last time this setup emerged, it resulted in a historic rally. Rekt Capital, a crypto investor, also pointed out that Ethereum is currently trading within a “historical demand area.” He suggested that if the price can generate a strong enough reaction, Ethereum could reclaim the $2,196-$3,900 macro range, potentially ending the entire sub-$2,200 downside as a downside wick.

Ted, a seasoned crypto commentator, shared a chart indicating that Ethereum has broken out of its short-term accumulation phase. He explained that the digital asset has been in accumulation since its drop from $3,000 to $1,800. Ted added that sustained price action above $2,000 could ignite a significant price rally. Daan Crypto Trades, a noted analyst, revealed that he recently converted some of his long-term Bitcoin holdings into Ethereum for the first time in years, citing the current ETH/BTC trading pair as presenting an attractive risk/reward setup.

Beyond the bullish price action, several technical indicators are signaling a potential Ethereum rally in the near term. Notably, Ethereum’s weekly Relative Strength Index (RSI) recently hit a multi-year low, suggesting that a trend reversal could be imminent. However, rising Ethereum reserves on crypto exchanges remain a point of caution, as they could suppress bullish momentum if investors opt to sell.

At the time of reporting, Ethereum was trading at $2,029, marking a 7.8% increase in the past 24 hours. The overall sentiment among analysts is cautiously optimistic, with many pointing to historical patterns and technical indicators as signs of a potential rally. However, the rising reserves on exchanges serve as a reminder that market conditions can change rapidly, and investors should remain vigilant.