The cryptocurrency markets experienced their first significant pullback of the year, resulting in a 7% decrease in market capitalization. Both Bitcoin and Ethereum saw their prices drop, with Bitcoin falling below $95,000 and Ethereum nearing $3,300. Despite this bearish trend, there are signs that the bulls are working to stage a comeback, indicating a potential rebound in the near future.
The beginning of 2025 saw a strong bullish trend that lifted the entire crypto market, including BTC and ETH. While a pullback was expected, the positive sentiment surrounding these tokens has remained intact. Data from Santiment shows that the price change since the start of the year has remained positive, despite the recent downturn, suggesting that a rebound could be on the horizon.
Popular tokens like XRP, XLM, and ADA, as well as AI tokens, are showing strength alongside BTC and ETH. This momentum in the market could potentially push the ETH price to new highs, possibly reaching a five-digit figure by the end of 2025. However, the price is currently facing resistance at the 0.78 Fibonacci level but has found support at the 0.618 Fibonacci level. A breakout from this range could signal a move towards the 1 Fibonacci level.
Looking at Ethereum’s historical price action, the token has struggled to surpass the $4000 mark. The latest attempt to break this range has faltered, with technical indicators turning bearish. The weekly MACD is showing a decrease in buying volume, potentially leading to a bearish crossover. While short-term bearishness can be overcome quickly, long-term price action may be impacted. Holding the 50-day moving average as support is crucial for Ethereum, as a failure to do so could trigger a wider correction in the price.
Although there has been a slight increase in volume on the platform, volatility has also risen. Ethereum has yet to show strength against Bitcoin, which is trading within a descending parallel channel. While a quick rebound is possible, a significant upswing for Ethereum may not be immediate. However, a shift in market dynamics and a surge in buying volume could propel the token towards higher targets, potentially reaching $12,000 by the end of the year.