Has Ethereum Price Rally Ended Or Is It Just A Partial Pullback?

14 minutes ago by · 2 mins read

Ethereum price has slipped under $2,500, with analysts like Crypto Patel predicting a further correction to the $1,930–$2,100 range.

Following strong gains to $2,700 last week, Ethereum is facing a pullback as the ETH price plummets 5% in the last 24 hours, slipping under $2,500 levels. This pullback comes amid a broader crypto market decline with investors evaluating as what happens next.

Ethereum Price Pullback, Analysts Eye $1,800 as Key Support Zone

Popular analyst Crypto Patel believes that Ethereum price could see a potential pullback following its rejection near the $2,500 Fair Value Gap (FVG) zone. The analyst further added that ETH is now entering a correction phase, with the price likely to drop into the $1,930–$2,100 FVG range.

As per Crypto Patel, this zone aligns with a bullish order block near $1,810, wherein we can see heightened accumulation and chances of re-entry by investors. However, the analyst states that if Ethereum manages to stage enough demand at this level, it could pave the way for a rally toward $4,000–$5,000 in the next bullish cycle.

However, investors should keep in mind that the recent Ethereum price rally comes along with heavy ETH accumulation by institutional players. In a massive accumulation, Abraxas Capital bought over $650M in the past few weeks, marking one of the biggest institutional purchases of ETH.

Crypto analyst Ali Martinez reports a significant surge in Ethereum accumulation by whales over the past month. According to on-chain data, large investors have collectively added over 450,000 ETH to their holdings during this period.

ETH/BTC Pair Screams of Undervaluation

Blockchain analytics platform CryptoQuant highlights a significant recovery in Ethereum’s performance against Bitcoin. The ETH/BTC ratio has surged by 38% from its five-year low, suggesting that Ethereum may have bottomed out compared to the leading cryptocurrency.

Some of the key indicators driving this momentum include the rising demand for ETH, the declining selling pressure, and the growing accumulation by Ethereum-focused ETFs. As per the data from Farside Investors, spot Ethereum ETFs accumulated $22 million worth of ETH on Friday, highlighting renewed market optimism.

On the other hand, Ethereum Layer 2 solutions continue to make progress. Earlier this week, Starknet hit the milestone to become the first Layer-2 ZK-rollup network to reach Stage 1 decentralization.

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