Ethereum Holds $1,800 Support Amid 44% 2025 Drop, Analysts See 100-250% Upside

Ethereum's price has demonstrated resilience amidst a broader stock market selloff, maintaining a strong support level at $1,800. This stability suggests a high probability of a price reversal, with some analysts predicting that Ethereum could reach $4,000 in the near future. The cryptocurrency has faced challenges due to Bitcoin's dominance, which has siphoned capital away from altcoins, including Ethereum. Despite this, Ethereum's strong support level indicates that it may be poised for a significant rally if resistance levels are broken.

Several market analysts believe that the bottom is in, and the possibility of further ETH downside remains limited. After a 44% drop in 2025 so far, the analysts also believe that ETH remains undervalued for now. Crypto analyst Rekt Capital highlighted that Ethereum market dominance has plummeted from 20% to just 8% since June 2023, marking a significant decline in its share of the overall crypto market. The analyst further highlighted that the current level aligns with a historical reversal zone—dubbed the “green area”. This is the same zone from where the Ethereum price has made strong comebacks in the past.

Crypto analyst Javon Marks identified a regular bullish divergence formation on the Ethereum price chart, while signaling a shift in the momentum. According to Marks, while ETH prices have continued to decline, the divergence suggests that bearish strength may be waning. This technical pattern typically indicates that bulls could be preparing to regain control of the market. Marks has set a potential upside target of $4,000 for Ethereum, contingent on a sustained bullish reversal.

Furthermore, currently the risk reward ratio seems to benefit the investors as further downside is limited to $1,500 as expected by investors. However, the upside potential for ETH is higher to nearly 100-250% from the current levels. On the downside, the current support for ETH price is $1,650, however, for the potential uptrend to resume, ETH must surge past $2,100 levels.

While analysts are turning optimistic over the Ethereum price recovery, we cannot ignore the whale activity around ETH. Crypto analyst Ali Martinez has reported a significant whale selloff in the Ethereum market, with data revealing that large holders have offloaded 500,000 ETH over the past 48 hours. Ethereum has largely struggled to keep pace with Bitcoin over the past year. As per the current data, the ETHBTC ratio has dropped to the lowest level in nearly five years.

The total value locked (TVL) in decentralized finance (DeFi) has declined by over 30% from its December peak, reflecting ongoing market uncertainties and macroeconomic pressures. This decline is partly due to a loss of user confidence in price rectifications, intensifying competition from alternative blockchains, and ongoing macroeconomic concerns. Ethereum and Bitcoin have seen declines in active addresses in the past week, further contributing to the overall market uncertainty.

Experts believe that innovation and policy shifts could aid in the recovery of the DeFi sector. Vincent Liu, Chief Investment Officer at Kronos Research, emphasized that innovation is crucial for DeFi to return to form. A reversal of tariff policies and a positive consumer price index (CPI) report could trigger a broad market recovery, helping to bring DeFi back to hype. Nick Ruck, Research Director of LVRG, stated that DeFi is well-placed to be a long-term growth story, with regulators worldwide becoming increasingly friendly to blockchain technology and incorporating real-world assets in financial frameworks.

Despite the challenges, Ethereum's strong support level and potential for a price reversal suggest that it could be a strong investment opportunity. The cryptocurrency's ability to maintain its value amidst market uncertainties and macroeconomic pressures indicates that it has the potential to reach new heights in the near future. As the DeFi sector continues to innovate and adapt to user demand, Ethereum's role as a key player in the cryptocurrency market is likely to become even more prominent.