After Monday’s drop, Ethereum (ETH) fell below key support levels and hit its lowest price since November. Nonetheless, several market watchers remain bullish, predicting a massive rally for the cryptocurrency this quarter.

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Ethereum Drops To Two Month Lows

Ethereum started the week with a significant correction, falling from the weekend range to its lowest price in two months. Over the weekend, Ethereum hovered between $3,200 and $3,340 after recovering from last week’s lows.

Amid this performance, crypto analyst Ali Martinez pointed out that ETH’s most critical resistance was between $3,360 and $3,450, where 4.37 million addresses bought 6.47 million ETH. The analyst also noted that the cryptocurrency’s key support was between the $3,066 and $3,160 price range, where 4.12 million addresses had bought 4.9 million ETH.

Ethereum tested this support zone during the December corrections, bouncing from the zone after the pullbacks. However, the king of Altcoins fell below this key support for the first time since November 9, hitting $2,920 on Monday.

After the 12% retrace from the weekend highs, ETH tested its post-election breakout level, confirming the $2,900 price range as support. Ethereum quickly bounced from this level, surging 9% to the $3,100-$3,200 range.

Crypto investor Miky Bull considers ETH’s recent performance the “perfect setup for a massive reversal.” The trader noted this could be the reversal that leads to a breakout from Ethereum’s inverse head and shoulders pattern.

The second-largest cryptocurrency by market capitalization has been forming a multi-month inverse head and shoulder pattern, as noted by several analysts, with its left shoulder formed around the $2,800 price range.

Rekt Capital had suggested that “any pullback close to the $3,000 level could see Ethereum develop a right shoulder.” Meanwhile, Miky Bull stated that the bullish setup targeted the $7,000 mark.

ETH Resembles 2021 Trajectory

Analyst Crypto Bullet pointed out that ETH’s chart resembled its 2021 behavior. The chart shows Ethereum saw a Double Top pattern during its rally over three years ago. Then, the cryptocurrency fell below the key support zone of $3,100, confirming the pattern.

However, it reclaimed this level after consolidating for two weeks, which led to the breakout to ETH’s all-time high (ATH). According to the analyst, Ethereum is repeating this pattern after yesterday’s drop, suggesting that the cryptocurrency’s “worst-case scenario” would be hitting ATH levels again.

Daan Crypto Traders highlighted ETH’s historical performance during the start of the year, stating that “the percentages ETH does within its first few weeks of the year are pretty crazy.”

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CoinGlass data shows that Ethereum registered mostly negative weekly returns in the first weeks of 2024 but started a 6-week positive streak as February approached. This could suggest that ETH’s negative performance could be reversed in the coming weeks. Nonetheless, Daan advised investors to look at the quarterly returns for a better overview of seasonality.

As of this writing, ETH is trading at $3,230, a 3% increase in the daily timeframe.

Featured Image from Unsplash.com, Chart from TradingView.com

2025 has not started on a strong note for Ethereum (ETH), as the second-largest digital asset by market cap continues to trade below its yearly open. Recent on-chain movements also suggest that crypto whales might be losing confidence in ETH’s potential to deliver outsized returns.

Are Whales Losing Faith In Ethereum?

While cryptocurrencies like Bitcoin (BTC), SUI, and Solana (SOL) experienced stellar performances in 2024 – delivering exceptional returns to investors and hitting new all-time highs (ATH) – Ethereum’s journey was comparatively underwhelming.

Unlike its peers, which set fresh ATHs in 2024, Ethereum’s ATH of $4,878 remains untouched since November 2021. This highlights ETH’s relatively weaker price performance last year.

Moreover, Ethereum repeatedly failed to breach the stubborn $4,000 resistance level throughout 2024. Currently trading in the low $3,000 range, ETH remains approximately 35% below its ATH.

On-chain analysis now reveals that Ethereum’s underwhelming performance is beginning to shake the confidence of its largest holders. According to an X post by crypto tracking account Lookonchain, some whales have started selling ETH at a loss.

Per the post, three wallets – likely controlled by the same whale – sold 10,070 ETH for 33 million DAI. The transaction was executed at a market price of $3,280, resulting in a $1 million loss for the whale.

Interestingly, this particular whale appears to be a seasoned market participant. In December 2024, the same entity withdrew 24,029 ETH – worth over $81 million at the time – from Binance. Despite the recent sale, the whale still holds 13,959 ETH, valued at $45.48 million at current prices.

Concerns also linger regarding the Ethereum Foundation’s recurring practice of selling ETH near market tops. A recent post by Spot On Chain revealed that the foundation has already sold some ETH in 2025. In 2024, the organization offloaded 4,466 ETH for $12.61 million, raising questions about its timing and strategy.

Can ETH Make Amends In 2025?

Although 2024 was lackluster for Ethereum in terms of price performance, 2025 holds promise, thanks to strengthening fundamentals and growing institutional interest in the digital asset. For example, the US Securities and Exchange Commission (SEC) recently approved the first hybrid BTC and ETH exchange-traded funds, signaling increased mainstream acceptance.

From a technical perspective, things also appear to be improving for Ethereum. Recent analysis highlights the formation of an inverse head-and-shoulders pattern on the 3-day chart, which could finally pave the way for ETH to break through the $4,000 resistance level.

Additionally, historical data indicates that Ethereum tends to outperform other digital assets during January following a US election year, adding to the optimism surrounding its price trajectory. At press time, ETH trades at $3,210, up 6% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

Ethereum is off to a rocky start this 2025, and its vibrant dev community isn’t happy. According to reports, the Ethereum Foundation has recently moved a substantial amount of Ether. The foundation’s transactions to move and sell its tokens became messier when one of its employees attempted to explain the situation, generating a lot of backlash.

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Ethereum’s recent transactions have occurred since Bitcoin and other top tokens have been ripping through the charts. Price-wise, Ethereum is trading between $3,200 and $3,384, which is too far from 2021’s high of $4,870.

What’s Up, Ethereum Foundation?

The Ethereum Foundation, the primary organization supporting the development of the blockchain, is not helping the cause. Regardless of its intention or the overriding objectives for unloading massive ETH tranches, these moves still leave a bad taste in the mouths of most holders and supporters.

According to a recent post by Spot On Chain on Twitter/X, the foundation has recently moved another 100 ETH in exchange for 336,475 DAI. According to the account, the foundation sold 200 ETH tokens for $67k in the first few days of 2025 at an average cost of $3,361. The account added that ETH is 31% below its 2021 high of $4,878, while Bitcoin continues to retest its highs and currently breached the $109k level.

[ATTENTION] The Ethereum Foundation just sold another 100 $ETH for 336,475 $DAI!

In total, they have sold 200 $ETH ($672K) in 2025 at an average price of $3,361 over the past 12 days.$ETH remains 31% below its 2021 ATH of $4,878, while $BTC has hit a new ATH of $109K today!… https://t.co/9CWWVsrfhj pic.twitter.com/ZOr504i1HG

— Spot On Chain (@spotonchain) January 20, 2025

Ether Supporter’s Comments Draw Negative Feedback

The foundation’s latest transaction, the sale of 100 tokens, came after Josh Stark’s comments came to light. Stark, a popular ETH supporter, defended the foundation’s decision to sell these ETH tokens, arguing that they’re still actively using the blockchain’s native token.

the EF uses Ethereum all the time, for instance to (1) swap ETH for stables (usually @CoWSwap) and (2) to pay people (grantees, team members) in stables and ETH, on mainnet and L2s. Events we run (like Devcon and Devconnect) take onchain payments and use onchain ID for tickets.

— Josh Stark (@0xstark) January 20, 2025

In a Twitter/X posting, Stark explained that the foundation uses its tokens every time. These tokens buy stablecoins, pay their people in stablecoins, and support the blockchain’s events.

Stark’s comments didn’t sit well with some crypto observers and commentators. Twitter/X user WazzCrypto hit Stark for using ETH “dump” as an explanation to support the foundation’s transactions. User @VelvetMilkman was disappointed with Stark, arguing that it’s a lame excuse for using the altcoins.

Meanwhile, X user Trading_Axe has a more scathing, and no holds barred take on the issue:

Their brains actually do not work at all.

The fuck you need 300K for so urgently?

What could you POSSIBLY, as the ETHEREUM FOUNDATION, when the entire world is watching, need 300K OF A PUBLIC SELL ORDER for?

Mindless cockroaches.

Retar Dio.

— ً (@trading_axe) January 20, 2025

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Buterin Sets The Record Straight For ETH

Many critics say Ethereum is losing ground against other blockchains, particularly Solana. As such, many recommend that Ethereum stake its tokens instead of selling them to generate yields. The increasing number of comments and criticisms against the foundation has caught the attention of Vitalik Buterin, Ethereum’s co-founder.

Buterin said the team has also explored many options, including staking their tokens. However, regulatory issues and potential problems with the hard fork prevented them from doing so. Although there’s a friendly regulatory environment right now, the risks associated with staking remain high.

Featured image from ETF Stream, chart from TradingView