Ethereum (ETH) Price Reaches Critical Accumulation Zone, New ATH Possible in 2025

Ethereum (ETH) price has bounced back strongly from the $2,920 low recorded on January 13. This has sparked optimism for a bullish breakout.

After hitting a low of $2,920 on January 13, Ethereum (ETH) has shown signs of recovery, trading above $3,100. This price movement bodes well for the second-largest cryptocurrency, hinting at a bullish breakout and a possible new all-time high (ATH) by 2025.

Crucial Accumulation Zone Reached by Ethereum Price

As ETH price approached critical support, analysts highlighted the significance of the $2,800-$2,920 zone, which IntoTheBlock data reveals as the ultimate buy zone. This price range served as the last line of defense before prices began to recover.

According to CrediBULL Crypto crypto analyst, 2024 saw Ethereum trade within the $2,800-$4,000 range for nearly ten months. This is relevant because accumulation periods eventually lead to breakout moments, as seen in Bitcoin's recent price rally.

Afterward, ETH could be expected to retest the support zone around $3,000. A successful rebound from this level could open up the $4,000 price point, indicating a 30% move from the current price.

This sentiment was echoed by Rose Premium Signals, whose predictions for ETH are especially promising, given that Ethereum price is recovering swiftly from the $2,947.83 support area. Marked price targets include $4,103.26, $4,788.46, and $5,568.18, highlighting the positive outlook and suggesting that prices may rise even further.

If ETH manages to cross the $4,000 barrier and hold it, analysts believe it could continue its ascent toward its former high of $4,879 and reach $5,000 by 2025.

Funding Rates Recovery Signals a Return to Bullish Trend

Funding rates for Ethereum, which indicate the cost of carrying long or short positions on perpetual futures contracts, also saw a rebound. As ETH fell below the $3,000 mark, funding rates turned negative, according to data from CryptoQuant, reflecting bearish traders.

However, funding rates recovered near the $3,000 level, indicating renewed buying interest. This shift suggests that more traders are buying or going long, anticipating further price increases. If this trend continues, it could provide additional support for ETH in its bullish turn.

On the other hand, a change in funding rate momentum could indicate bearish pressure, potentially pushing ETH below the $2,800 level.

Economic Events Bolster Market Sentiment

News that Trump’s economic advisers are planning a measured approach to tariffs buoyed cryptocurrencies and other markets in the world. With trade concerns easing, investors showed a greater willingness to take on risk, boosting demand for riskier assets like cryptocurrencies.

The dollar index fell for the first time in six days as global stocks and Ethereum began to stabilize. Pundits suggest that a further improvement in the economic outlook could allow the Federal Reserve to cut interest rates, which would positively impact digital currencies like ETH.

Traders are also keeping a close eye on upcoming inflation data in the U.S., which could help predict the Fed’s next steps and their impact on the future dynamics of the Ethereum rate.

Levels to Watch in Ethereum Price Movement

As ETH trades around $3,200, the next key resistance level is at $3,400, which also aligns with the 50-day EMA. A breakout at this level would open up the path for ETH to retest the $4,000 level once again, a crucial level for its further bullish momentum.

If ETH does break through the levels outlined by Rose Premium Signals at $4,103.26, $4,788.46, and $5,568.18, then it will mark new highs for Ethereum and only serve to confirm the bull trend.

To the downside, if ETH fails to maintain strength above $3,000, it could retest the $2,800–$2,400 range, which is a historically strong demand area with over 61 million ETH.