Crypto
Despite a volatile past two weeks, driven by Donald Trump’s proposed trade tariffs and higher-than-expected January 2025 inflation data in the US, Ethereum (ETH) has successfully defended the $2,380–$2,460 demand zone. Now, analysts are eyeing a potential move toward $3,000 for the digital asset.
Crypto Ethereum Defends Key Demand Zone Amidst Volatility
According to an X post by crypto analyst Ali Martinez, ETH has managed to hold above the critical $2,380 – $2,460 demand zone. With no major supply barriers ahead, the cryptocurrency could be on track to reach the $3,000 price target.
For the uninitiated, a demand zone in trading is a price area where buying pressure is significantly strong, often leading to price reversals or upward movements. It is identified by historical price action, where demand previously exceeded supply, causing prices to rise.
Crypto trader Daan Crypto Trades shares a similar outlook on Ethereum’s recent price momentum. According to the trader, while ETH has successfully remained above the $2,500 level, the key hurdle to overcome is the $2,800 price level. They noted:
The key level for continuation, and for me to say that this correction is over, would be a retake of that $2.8K level. Flips the market structure locally and has been at an important high timeframe level during this cycle.
From a technical perspective, fellow crypto trader Merlijn The Trader highlighted the formation of a ‘textbook double bottom’ on the 5-day Ethereum chart. They further pointed out that ETH’s multi-year trendline remains intact, suggesting that the price structure is primed for an upward breakout.
Similarly, seasoned crypto influencer Crypto Rover has identified a potential triple-bottom formation on the weekly Ethereum chart. If this pattern plays out, the $4,000 resistance level will be a crucial barrier for ETH to break before it can attempt a new all-time high (ATH).
Crypto Is ETH About To Surprise The Market?
Ethereum’s below-average price performance over the past year has drawn significant attention in the crypto market. Compared to peers like Solana (SOL), XRP, and SUI, ETH has failed to deliver substantial returns to its holders since reaching its current ATH of $4,878 in November 2021.
This lackluster performance has fuelled an unprecedented level of bearish sentiment around ETH. A recent report revealed that ETH short positions have surged by 500% since November, highlighting dwindling investor confidence in the asset.
However, this excessive bearish sentiment could set the stage for a surprise move. If ETH manages to trigger a short squeeze, it could force the liquidation of numerous short positions, fuelling a sharp upside rally. At press time, ETH trades at $2,740, up 4.1% in the past 24 hours.
Featured image from Unsplash, Charts from X and TradingView.com
Crypto
Ash Tiwari
Ash is a dedicated crypto researcher and blockchain enthusiast with a passion for diving deep into the evolving world of decentralized technologies. With a background in writing and a natural curiosity for how digital assets are shaping the future, he has immersed himself in various sectors of the cryptocurrency space, including decentralized finance (DeFi), NFTs, and liquidity mining. His journey into crypto started with a desire to fully understand the technology behind it, leading him to explore and engage with these systems firsthand.
Ash’s approach to DeFi goes beyond surface-level research as he actively participates in decentralized protocols, testing their functionality to gain a deeper understanding of how they operate. From experimenting with staking mechanisms to exploring liquidity mining strategies, he is hands-on in his exploration, which allows him to provide practical, real-world insights that go far beyond theoretical knowledge. This immersive experience has helped him develop a comprehensive grasp of smart contracts, token governance, and the broader implications of decentralized platforms on the future of finance.
In the NFT space, Ash’s interest is driven by the technology’s potential to reshape ownership and creativity in the digital age. He has explored various NFT projects, gaining insights into how these digital assets function within different ecosystems. His focus is on understanding the evolving relationship between creators and communities, as well as the innovative uses of blockchain technology to establish authenticity and provenance in the digital world. Ash’s research in this area often touches on the intersection of culture, technology, and community-driven projects.
A key area of his expertise lies in liquidity mining, where he has engaged with various decentralized platforms to understand how liquidity provision contributes to the functionality and security of DeFi ecosystems. Ash’s hands-on involvement has allowed him to analyze the risks, rewards, and broader implications of liquidity pools, giving him a well-rounded perspective on this integral part of DeFi. His understanding of risk management and protocol design allows him to provide insights into how these systems can be navigated effectively, with an emphasis on both opportunity and caution.
When it comes to communicating these complex topics, Ash’s writing is grounded in clarity and depth. He excels at breaking down intricate blockchain concepts into easily digestible information for a wide audience. Whether explaining the workings of decentralized exchanges or outlining the future potential of blockchain technology, Ash ensures that his content is accessible to both those new to the space and experienced participants looking for deeper insights.
Beyond DeFi and NFTs, Ash explores a wide array of emerging blockchain applications. His research spans areas like cross-chain technologies, decentralized governance, and blockchain’s potential to integrate with traditional finance. He is continuously learning and adapting to the latest developments, ensuring that his insights are both timely and relevant. His interest extends to how these technologies are creating new possibilities for decentralization, transparency, and trust in a variety of industries.
Ash’s commitment to engaging with the crypto space firsthand gives him a unique perspective that goes beyond what can be learned from research alone.
