Ethereum (ETH) Price Stages a Recovery Above $2,000, Showing Signs of Potential Trend Reversal

Ethereum has staged a recovery above the $2,000 mark after weeks of bearish pressure. The second-largest cryptocurrency is currently trading at $2,032

Ethereum (ETH) staged a recovery above the $2,000 mark on Wednesday after weeks of bearish pressure. The second-largest cryptocurrency is currently trading at $2,032, showing signs of potential trend reversal following a major correction that saw it lose over 50% of its value from December 2024 highs.

Ethereum is attempting to break free from a three-month downtrend. ETH dropped from $4,100 in December to lows around $1,750 in March, wiping out half its market value.

Technical analysis shows Ethereum is facing key resistance at the $2,020 and $2,040 levels. Breaking above these hurdles could open the path toward $2,120 and potentially $2,150.

A clear move above the $2,150 resistance is what traders are watching for. This level could be the gateway to a larger rally, with some analysts suggesting a potential move toward $2,800 if this breakout occurs.

On the downside, Ethereum has established support at $1,980. Additional support levels exist at $1,950 and $1,880, which could come into play if the current recovery loses momentum.

The cryptocurrency is currently trading below its major moving averages. ETH remains under the 50, 100, and 200 Exponential Moving Averages, which generally indicates the market is still in a bearish trend despite the recent bounce.

Institutional Interest

Institutional interest in Ethereum continues to grow despite price volatility. BlackRock’s Ethereum holdings have increased to almost $1.145 billion, up from $990 million just a week earlier.

Fidelity Investments has filed with U.S. regulators to register a tokenized version of its U.S. dollar money market fund on Ethereum. The $5.8 trillion asset manager plans to launch “OnChain” to track transactions of the Fidelity Treasury Digital Fund, an $80 billion fund primarily consisting of U.S. Treasury bills.

This move places Fidelity among major asset managers like BlackRock and Franklin Templeton that are using blockchain technology for conventional financial assets. The project aims to provide investors with more transparency and accurate records of share transactions.

Ethereum remains the preferred blockchain for real-world asset tokenization. Data shows Ethereum hosts over $3.3 billion worth of tokenized real-world assets, far above its closest competitor Stellar with $465.6 million.

“There was no question that the blockchain we would start our tokenization on would be Ethereum… that’s the natural default answer,” said Robbie Mitchnick, head of crypto at BlackRock, at the Digital Asset Summit in New York.

On-chain data reveals growing whale accumulation, possibly indicating confidence in future price appreciation. Addresses holding between 10,000 and 100,000 ETH have expanded their holdings by 28.73% since March 12.

Glassnode data supports this trend, showing that the number of addresses owning at least $100,000 worth of Ether has increased from around 70,000 on March 10 to over 75,000 by March 22.

Looking at short-term price action, analysts believe Ethereum must recover the “macro range” above $2,200 to reverse its three-month declining trend. Ethereum’s futures open interest reached a new all-time high on March 21, suggesting large traders might be positioning for a climb above $2,400.

For the long term, investment firm VanEck projects a $6,000 cycle top for Ethereum’s price during 2025. This forecast comes despite concerns that global trade war worries may continue to pressure cryptocurrencies until early April.