ETH’s price has been on a downward trajectory, losing 50% of its value since trading at $4,100 three months ago. Today, it’s priced at $2,078, after hitting a low of $1,750.
Despite the downturn, analysts are predicting a strong rebound, with a potential 65% rally to $3,400 by June if historical trends hold. What factors drive the expectations of this surge?
Market Context & Recent Price Action
ETH’s decline mirrors broader market corrections but remains within historical patterns. Previous downtrends followed by rebounds have led to significant gains, raising expectations of a turnaround.
Notably, Bitcoin’s recent price surge to nearly $88,000, fueled by positive market sentiment, may indicate a turning point. Ethereum has also seen a 9% increase, while Solana has risen 10% over the past week, reflecting a broader market upswing.
Institutional Confidence & Whale Accumulation
BlackRock’s BUIDL fund now holds approximately $1.145 billion worth of ETH, marking a significant increase from $990 million just a week prior, according to Cointelegraph.
BlackRock’s investment strategy focuses on tokenized real-world assets (RWAs), with Ethereum remaining the dominant blockchain for this purpose. While the fund diversifies across other chains like Avalanche, Polygon, and Arbitrum, Ethereum remains its core allocation
Also, large Ethereum holders, often referred to as whales, have also been significantly accumulating ETH, reinforcing the bullish case. According to on-chain data from Nansen, wallets holding 1,000–10,000 ETH have increased their holdings by 5.65% since March 2024.
Even more notably, the 10,000–100,000 ETH cohort has expanded by 28.73% over the same period.While the largest category of holders (those with over 100,000 ETH) has remained relatively stable, the activity in smaller whale categories underscores a growing conviction among institutional and high-net-worth investors that Ethereum is undervalued at current levels.
Historical Trends & Key Support Levels
Ethereum has hit a critical support level that’s triggered huge gains in the past. We’re talking 2,000% and 360% rallies. If history repeats itself, this could be the starting point for a major price surge.This support level is like a floor that buyers have consistently stepped in to defend.
If ETH breaks through resistance, analysts suggest further price targets of $5K to $7K in the next major cycle. The impact of macroeconomic conditions, regulatory developments, and network upgrades will play a role in shaping the trajectory.
Ethereum is at a decisive point. Institutional demand and whale accumulation suggest a potential breakout, but resistance levels remain key obstacles. Will ETH follow historical patterns and rally, or is another pullback on the horizon?
