Ethereum performance has lagged behind the broader cryptocurrency market in recent months, with the asset failing to capitalize on the bullish momentum recently seen in the market.

While Bitcoin has repeatedly reached new all-time highs, Ethereum has struggled to break past $4,000 and remains well below its 2021 peak of $4,800.

Amid this slow recovery, a crypto analyst known as ProjectW has shared insights on the potential for Ethereum’s resurgence, urging investors to consider the long-term picture.

In a detailed post on X, ProjectW outlined several factors that could drive Ethereum’s next breakout. The analyst highlighted Ethereum’s years of accumulation within a broad trading range, suggesting that such prolonged consolidation often precedes significant price expansions.

Despite the negative sentiment around Ethereum and narratives favoring other networks like Solana, ProjectW emphasized that Ethereum’s long-term upward trend remains intact.

A possible retest of the sub-$ 3,000 range could serve as a catalyst, providing the liquidity needed to push Ethereum past $4,000 and set the stage for a broader recovery.

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ETH/BTC Performance And Outlook

A key point in ProjectW’s analysis is Ethereum’s ongoing underperformance against Bitcoin. So far, Ethereum has struggled to match Bitcoin’s gains during market rallies and has often faced steeper declines during market corrections.

This trend is reflected in the ETH/BTC trading pair, which remains in a bearish structure on higher timeframes. However, the analyst identified a potential reversal zone around $2,700 for Ethereum, which could coincide with a structural shift if ETH/BTC stabilizes at these levels.

THE BIG COMEBACK OF ETHEREUM: An Unbiased Evaluation

“Ethereum is dead. Solana stole the show.”

You’ve probably heard this take a hundred times.

The sentiment around ETH has never been worse.

And yet – if we strip away emotions and narratives – Ethereum’s long-term… pic.twitter.com/ipkXvuXbnj

— ProjectW (@fitforcrypto_) January 29, 2025

The analyst also touched on the role of market makers and institutional players in shaping Ethereum’s price trajectory. According to ProjectW, recent negative coverage of Ethereum—ranging from concerns about the Ethereum Foundation to repeated comparisons with Bitcoin—may not be coincidental.

Instead, it could represent a deliberate effort by major market participants to accumulate Ethereum at lower prices, a pattern observed in past market cycles.

The involvement of institutional players, such as Trump-affiliated World Liberty Financial reportedly acquiring significant amounts of Ethereum, adds another layer of complexity to the current market dynamics. The analyst wrote:

We know how this game works. MMs move price where they want – especially to areas with high liquidity. And how do they do it? Media narratives. Recently, we’ve seen an aggressive push of ETH FUD in major publications. – The Ethereum Foundation being questioned – ETH’s underperformance against BTC being highlighted everywhere Is this really a coincidence? Or is it the same old SM playbook? Flood the market with FUD → Retail panic sells at the bottom → Institutions accumulate.

Ethereum’s Core Strengths and Future Outlook

Despite recent underperformance, the analyst argued that Ethereum’s core fundamentals remain strong. ProjectW wrote:

Despite all the noise, Ethereum remains the most important smart contract network. – The deepest liquidity in DeFi – The highest security & decentralization – It has the strongest developer ecosystem While sentiment is at rock bottom, the actual fundamentals suggest ETH is still the backbone of the space. So where does this leave us?

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While no rally is guaranteed, ProjectW suggested that Ethereum’s long-term conditions are aligning for potential growth. The analyst concluded with a call to closely monitor Ethereum’s progress in the coming weeks, as market participants await signs of a sustained upward trend.

Featured image created with DALL-E, Chart from TradingView

Crypto analyst Max has revealed that the Ethereum price is at a critical junction, which could determine its trajectory going forward. The analyst remarked that ETH faces a ‘moment of truth’ and explained that the crypto could enter a bearish phase if it doesn’t complete a particular pattern. 

Ethereum Price Faces Moment Of Truth After ETH’s Crash Toward $3,000

In an X post, Max stated that the Ethereum price faces a moment of truth right here following ETH’s crash to around $3,000. The crypto analyst added that if ETH doesn’t complete its famous “ultra-scary 3 drive into the lows” pattern before being miraculously saved, then it is over for a while, indicating the crypto could suffer a further downtrend. 

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Max further explained that there is nothing but air beneath the Ethereum price structure, which he highlighted in his chart. His accompanying chart showed that the next significant support level for ETH beneath $3,000 was at $2,400, indicating that the crypto could drop to as low as this level if it loses the psychological $3,000 level as support. 

The crypto analyst then mentioned the worst case that could happen before giving up on the Ethereum price is if it sweeps the $2,800 wick and then the Bitcoin price drops to as low as $95,000. In such a scenario, Max remarked that ETH would need an immediate reaction, possibly because of the bearish sentiment that could spark among investors. 

However, the analyst looks to still be bullish on the Ethereum price in the meantime, reaffirming that he has no intention to sell his spot holdings. Crypto whales also look to be bullish on ETH despite its underperformance, as they have been actively accumulating this past week. Bitcoinist reported that Ethereum’s large transaction volume spiked by over 200% in 24 hours, indicating an accumulation trend from these whales. 

How The ETH Price Action Could Play Out

In an X post, crypto analyst Wolf predicted how the Ethereum price action could play out this year while claiming that ETH is currently being suppressed so that large players can accumulate. According to the analyst, ETH could break out to the psychological $4,000 price level by the end of February. 

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Following that, Wolf predicts that the Ethereum price will enjoy a bullish March as it rallies from $4,000 to $5,000 in days. He added that the second-largest crypto by market cap could hit $6,500 by early April. Once that is done, the analyst expects Ethereum to experience two to three weeks of price correction before it then pushes to between $9,500 and $10,000. 

At the time of writing, the Ethereum price is trading around $3,100, down almost 2% in the last 24 hours, according to data from CoinMarketCap.

Featured image from Unsplash, chart from Tradingview.com

Ethereum (ETH) has had a turbulent week, with the price dipping to tag the critical $3,000 support level before recovering to current levels around $3,200. This sharp drop sparked fear among investors, as doubts about Ethereum’s performance for this cycle intensified. Many began questioning whether ETH could regain its momentum amid the broader market’s volatility.

However, key on-chain metrics suggest that not all investors share this skepticism. Data reveals that major players are still accumulating ETH despite recent price action. In the past 24 hours alone, 13 new mega whales—wallets holding over 10,000 ETH each—have joined the network. This signals strong confidence among high-net-worth investors and institutional players, who appear to see the current price levels as an opportunity.

This significant accumulation activity suggests that big players are positioning themselves for a potential breakout. While smaller retail investors may be hesitant, the moves of these whales could indicate optimism for Ethereum’s long-term prospects. As ETH stabilizes around the $3,200 level, the market will be closely watching whether this accumulation trend leads to renewed bullish momentum and a stronger recovery in the weeks ahead. The coming days could be pivotal for Ethereum’s trajectory in this market cycle.

Ethereum Enters A Recovery Phase

Ethereum has faced significant selling pressure since late December, shedding over 25% in value during this period. The prolonged downturn has tested investor confidence, yet recent price action suggests that the bearish phase may be nearing its conclusion. Analysts are now optimistic about a reversal and potential recovery, with Ethereum showing signs of regaining its footing.

Top crypto analyst Ali Martinez has highlighted compelling data supporting this bullish outlook. According to his analysis shared on X, 13 mega whales—wallets holding over 10,000 ETH each—have joined the Ethereum network in the last 24 hours. 

This surge in large-scale accumulation suggests that big players are taking advantage of current price levels, positioning themselves for an anticipated recovery. Significant whale activity often serves as a strong indicator of confidence among institutional and high-net-worth investors, who typically operate with a long-term perspective.

At its current levels, Ethereum appears to be building a strong base of support. This accumulation by mega whales aligns with the broader market sentiment that ETH is poised for a bullish phase once the selling pressure subsides. If ETH can hold its ground and reclaim key resistance levels, the next upward move could mark the beginning of a strong recovery and sustained bullish momentum in the months ahead.

ETH Testing Crucial Liquidity  

Ethereum is trading at $3,190 after finding strong support at the $3,000 mark, which aligns with the 200-day moving average. This key level has acted as a critical long-term indicator of strength, and ETH’s ability to hold above it suggests the potential for a trend reversal. After weeks of downward pressure, the current price action indicates that ETH might finally be ready to shift from its bearish trajectory.

For a complete confirmation of a bullish reversal, Ethereum must break above and hold the $3,500 level, a significant resistance zone that has capped its upward movement in recent weeks. Reclaiming this level would likely restore investor confidence and signal the start of a new uptrend. However, market conditions remain volatile, driven by speculation and broader macroeconomic uncertainties, which may delay ETH’s breakout.

Despite the challenges, Ethereum’s recovery above the 200-day moving average is a positive sign for the long-term outlook. Investors are cautiously optimistic as ETH stabilizes at current levels. Patience may be required, but the recent price action suggests ETH is setting the stage for a potential rally once it overcomes key resistance and the broader market finds direction.

Featured image from Dall-E, chart from TradingView