The crypto markets faced the first pullback of the year that whipped out nearly 7% of the market capitalisation. As the Bitcoin price dropped below $95,000, the Ethereum price also marked a low close to $3,300. Meanwhile, the bulls managed to halt the bearish trend and seem to be trying hard to validate a rebound. This suggests the market participants continue to remain bullish on the ETH price and hence the rally is believed to trigger a strong rebound shortly.
The year 2025 started with a notable bullish trend that elevated the entire crypto market along with BTC & ETH. This was expected to attract some bearish volume but the positive sentiments over the token remained unchanged. The data from Santiment shows the price change since the start of the year remains within the positive range, regardless of the interim pullback. Hence, indicating a potential pullback could be on its way.
Popular tokens like XRP, XLM, ADA, etc. and a few more display more strength along with BTC & ETH. The data also shows that AI tokens are gaining more momentum compared to the other categories, which may in turn impact the ETH price as well. Therefore, despite the current pullback, the price is still primed to mark new highs, probably above a five-digit figure before the end of 2025. But how?
The price is stuck at 0.78 FIB but has defended the support at 0.618 FIB. A rise from the range may only initiate a fresh rise towards 1 FIB. But here’s when this could happen.
The historical price action of Ethereum suggests the token is stuck up at a range and facing issues in rising above $4000. The latest attempt to rise above the range has faded as the technicals have turned bearish. The weekly MACD suggests a drop in the buying volume with the levels could undergo a bearish crossover. The short-term bearish action could be overcome quickly, but the long-term price action could impact the token in the long term. Currently, the price is holding the 50-day MA as a support and if it fails to defend, a wider correction may begin for the ETH price rally.
Meanwhile, the platform witnessed a slight rise in volume, which has increased the volatility. On the other hand, the token is yet to gain strength against Bitcoin, which has remained stuck within a descending parallel channel along the lower bands. While the possibility of a quick rebound remains few, the Ethereum (ETH) price may also not undergo a fine upswing. However, a change in the market dynamics and a huge influx of buying volume may turn the tables for the second-largest token as the higher targets remain fixed above $10,000, somewhere around $12,000 later this year.
