Ethereum is experiencing tough times amid price drops and mixed signals in the market. Analysts explore potential pathways for the situation.
Ethereum Decline: Forewarnings of a Crisis
The price of Ethereum currently stands at $2,510, reflecting a decrease of 3%. This is more than a simple pullback; multiple rejection candles below $2,550 indicate a technical breakdown. Analysts view this movement as a 'bear trap' where optimists get stuck in false hope. Indicators suggest a possible transition to a 'death cross': if the 50-day moving average crosses below the 100-day, a drop to $1,750 becomes plausible.
Institutional Inflows: Unpredictable Support
Despite declining prices, nearly $2 billion has flowed into Ethereum ETFs over the past eight weeks. Concurrently, Robinhood is launching the tokenization of 200 stocks on Arbitrum, signaling a strategic pivot towards Ethereum. Projections indicate that the second half of 2025 could bring over $10 billion in inflows, establishing Ethereum as the foundation of a tokenized economy.
Prospects and Key Levels of Ethereum
Ethereum is currently situated in a battleground between $2,226 and $2,535. A breakout above $2,535 could revitalize the bulls with targets at $2,600 and $2,800. However, if the price falls below $2,400, it might trigger a plunge to $2,226 or lower. Some projections suggest that Ethereum could reach $706,000 in the long run, based on massive institutional support and expected increases in cryptocurrency adoption.
The situation around Ethereum is unpredictable: price drops are complemented by stable inflows from institutions. It remains to be seen how developments will unfold, potentially determining the future of the cryptocurrency.
