Measured in dollars, ETH has entered a clear bullish trend.
The expectations of seeing Eth Mark new historical maximums in 2025 return.
The native cryptocurrency of the Ethereum Network, Ethher (ETH), experienced a significant substantial price rebound this week, which has reactivated the market hopes of the market in the midst of the weakness it shows with respect to Bitcoin (BTC).
The ETH price broke the resistance of the $ 1,800 (USD) on Thursday, which maintained the last two weeks, and reached the USD 2,400 today, its maximum in two months.
According to the analyst Scott MelkerETH perceived “a bull reversal of textbook”, which sees as a strong sign that Buyers can finally be intervening with conviction.
After a prolonged bearish trend and a brutal April closure below the 50 -month mobile average, this type of recovery is exactly what the bulls expected, he says.
Melker explained that the increase suggests a strong demand at low levels of price and a rejection of new falls. In his opinion, this behavior could represent a key turning point in the market structure.
Although he stressed that it is still early in the month, the rebound from the USD 1,600 last week and an eventual recovery of the 50 -month mobile average could pave the way for a sustained up upward movement, especially if they improve macroeconomic conditions.
While ETH has been lagging with BTC for months, Melker recalled that bullish trend reversions “do not begin with euphoria, but when few are paying attention.”
Pectra and macroeconomic improvements drive Eth
The ETH rise occurred in the middle of the general rise in financial markets. Jerome Powell’s speech, president of the Federal Reserve (FED), the American Central Bank, generated relief among investors by not adopting a more restrictive position on interest rates, as feared by Donald Trump’s tariff measures. This prompted both cryptocurrencies and actions.
The same day, in addition, Pin was activated, Ethereum’s most recent updatewhich could also have contributed to market enthusiasm. This initiative seeks to improve the efficiency, scalability and network safety, including improvements in account management and optimization of layer 2 solutions.
The context was also promoted by the announcement that there will be a meeting this weekend between representatives of the US and Chinese government to discuss trade negotiations. This encounter appeas the expectations of a de -cast of tariff tensions.
ETH was deflationary again
The Ted Pillows analyst highlightedas a positive point for the market, that “eth became deflation again with sirty.” This means that Co -burning has been greater than its issuancedue to an increase in network activity, something that facilitates its appreciation in a context of greater demand. However, for now the deflationary level of Ether is minimal or non -existent, because the supply has not decreased,
Pillows added That World Liberty Financial, the company of President Trump’s family, increased its market holdings, buying 3.5 million ETH, which drives its upward price.
According to his analysisif the price is maintained above the USD 2,200, a Altseasona period in which Altcoins show better performance than Bitcoin. Historically, this phenomenon occurs after a significant impulse of ETH demand on BTC.
In tune, the analyst known as Rekt Capital considered that, While ETH is staying above USD 2,200, it will be positioned for higher prices. As exhibited in the following graph, it emphasizes that the history of 2024 suggests that any new support test of this level would end in bullish results.
Despite the positive signals, ETH still lies 52% below its historical record of USD 4,900 reached in 2021 and 42% less than the maximum of USD 4,000 that it had since the cycle started after the 2022 cryptoin wire.
Despite the rebound, eth continues to show weakness
Despite the rebound, Price weakness regarding Bitcoin makes Some analysts are skeptical about eth. Among them, the investment firm Two Prime, which at the beginning of the month pointed out that “it is now negotiated as a memecoin, instead of as a predictable asset.”
In his opinion, Bitcoin has managed to recover his average behavior and has attracted purchases in the falls, after his recoil of the historical maximum, something that is not happening with ETH. This has led the firm to focus its investment policy only in Bitcoin.
It also highlights that the competitive network of Ethereum, Solana, offers faster transaction speeds, lower costs and better user experience, which generates challenges for the adoption growth of ETH.
He adds that the purchase of BTC by the quoted funds (ETF) has exceeded that of ETH, by a margin of almost 24 times, since its debuts last year. Even with a higher market capitalization, the total amount of bitcoin acquired by these funds is more than double that of Ethereum.
This same week, in the middle of the ETH rise, the ETFs of this asset registered capital exits, as seen below, which reflects a lower appetite of investors who access these instruments.
The Token Dispatch analysts identify Three main barriers faced by the ETFs of Ethereum. The first is the high cost of some products. For example, the Grayscale Ethereum Trust (ETHE) charges an annual commission of 2.5 %, well above the alternatives such as Blackrock ETF (0.5 %).
Second, Ethereum’s complex narrative. While Bitcoin managed to position himself as “digital gold”, Ethereum fulfills multiple functions: network for smart contracts, defi base, NFT and active ecosystem that generates performance by staking. This diversity makes it difficult to explain its value proposition in a simple way.
“Adoption is affected when financial advisors cannot easily explain an investment thesis … Bitcoin’s simplicity won that battle,” they said.
The third obstacle is the exclusion of staking in current ETFs. Since this function allows to obtain rewards for blocking ETH in intelligent contracts, its absence reduces the attractiveness of the product. “By preventing ETH ETFs from incorporating the Staking, regulatory responsible eliminated a differentiating feature,” they conclude.
Anyway, although the recent price impulse feeds enthusiasm, The market still has strong challenges to continue upso operators should consider the risks in the midst of the growing positive expectations.