Analysts predict Ethereum could recover to $4,000 soon and reach $6,000 by 2025.
Ethereum's price has been rather volatile, with Justin Sun, the founder of Tron, selling a large amount of ETH in a bearish market. Justin Sun has recently sold a large portion of his Ethereum, which only adds to the bearish market attitude.
In the last week, Sun sold around $143 million worth of ETH, which is 50% of his total assets. This comes in the same period of Ethereum's price retracement from its recent high at $4,000 to trading below $3,500, a drop of around 17%.
According to the blockchain analytics firm Spot On Chain, Sun has unstaked 39,999 ETH from platforms like Lido Finance and EtherFi. He then transferred all these assets into HTX. Since November 10th, Sun has transferred 108,919 ETH, or the equivalent of $400 million into HTX. Some of these trades occurred when local prices reached their highest levels, strengthening bearish pressure. At the moment, Sun has 42,904 ETH in Lido Finance, valued at $139 million, which is currently unstaking.
Ethereum's inability to remain above $3,500 has led to the current bearish market sentiment. Key levels have been identified at $3,420, with support levels at $3,200, $3,120, and $3,000 at risk of being breached. A break below $3,000 is possible and may lead to more declines that may take prices down to $2,600.
Despite the bearish trend, whales have entered the market to stabilize prices. Crypto analyst Ali Martinez stated that institutional investors have been buying 340K ETH, which is more than $1 billion in 96 hours. This accumulation is evidence of institutional investing during the price downturn. Also, it has been reported that Donald Trump's World Liberty Financial has increased its investment in Ethereum, showing that more institutions are joining the crypto market.
Despite signs of bearish pressure in short-term technical analysis, there are those who remain optimistic about the possibility of ETH. According to the market strategist, Titan of Crypto analysis, Ethereum is testing key levels that may signify a rebound based on Ichimoku cloud analysis. The support levels of the Kumo Cloud still hold some light at the end of the tunnel concerning the ongoing correction.
Interest in spot Ether ETFs has also risen sharply, with funds receiving $2.43 billion in inflows since their launch in the United States in July 2023. This trend could very well outshine Bitcoin ETFs by 2025, especially if regulators allow for staking yield options on these funds.
According to VanEck, this leading asset management firm, Ethereum could possibly be trading at $6,000 come Q4 of 2025. This forecast is in line with the increasing market sentiment driven by a steady inflow of ETFs and possible regulatory improvements for Ethereum staking.
Crypto analyst Justin Bennett explained that the price has to close above $3,540 to create a bullish setup. However, a failure to do so may lead to more downturn and Ethereum might test $2,600 in the near future.