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Cryptographic analyst <a target="_blank" href="https://bitcoinist.com/ethereum-continues-to-struggle-beneath-3500-q1-2025/” target=”_blank” rel=”nofollow”>Ali Martinez has discussed ethereum's current price action as the second-largest cryptocurrency by market cap remains below $4,000. The analyst outlined some facts to give a clearer idea of whether or not it is the right time to give up on eth.
Analyst analyzes whether it is time to give up on ethereum
in a <a target="_blank" href="https://x.com/ali_charts/status/1881338324696330747″ target=”_blank” rel=”nofollow”>x publicationAli Martínez described certain facts to determine if it is time to give up on ethereum. Firstly, the analyst noted that eth has had one of the worst results lately, a fact that seems to have caused <a target="_blank" href="https://bitcoinist.com/ethereum-buterin-defense-strategy-ai-doom/” target=”_blank” rel=”nofollow”>Vitalik Buterin change things by changing the leadership team of the ethereum Foundation.
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Martínez then alluded to historical data showing that ethereum performs well in the first quarter of each year. The analyst had previously hinted that this year will likely be no different. Back then, he noted that eth had its strongest performance in the first quarter, particularly in odd-numbered years, and 2025 is one of those years.
Given ethereum's positive performance in the first quarter, Martínez commented that this could explain why <a target="_blank" href="https://bitcoinist.com/ethereum-whales-are-loading-their-bags-data-shows-huge-eth-accumulation/” target=”_blank” rel=”nofollow”>crypto whales They have accumulated over $1 billion worth of eth in the last week alone. He previously revealed that these whales had purchased over 330,000 eth, valued at over $1 billion.
Furthermore, the crypto analyst commented that buying pressure is also evident in the currency outflowswith nearly $2 billion worth of ethereum withdrawn from crypto platforms over the last month. Specifically, over the last month, 540,000 eth, worth $1.84 billion, were withdrawn from exchanges. This accumulation trend is positive as it indicates that investors remain bullish on eth.
However, for ethereum to break out bullishly, Martinez mentioned that it must overcome several key resistance levels. From an on-chain perspective, the crypto analyst highlighted the $3,360 to $3,450 zone as the <a target="_blank" href="https://bitcoinist.com/crypto-whale-offloads-10070-ethereum-is-eth-losing-its-appeal/” target=”_blank” rel=”nofollow”>important supply wall. This range is the most critical resistance level for eth, while the key support zone is between $3,066 and $3,160.
From a technical analysis perspective
Martínez also provided insight into ethereum price action from a technical analysis perspective. He stated that eth appears to be forming the right shoulder of a <a target="_blank" href="https://bitcoinist.com/ethereum-eyes-4000-breakout-with-bullish-inverse-head-and-shoulders-setup-details/” target=”_blank” rel=”nofollow”>head and shoulders patternwith a neckline of $4,000. He added that a decisive break above this level could fuel a rally towards $7,000.
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The crypto analyst also revealed that this bullish target aligns with ethereum 3.2. Market value to realized value (MVRV) Price band, which is currently around $7,000. Amid this bullish outlook, Martínez mentioned that a worrying sign is the growth of the ethereum network, which has slowed down. The number of new eth addresses is said to have decreased by 9.32%, indicating reduced adoption.
Despite this, Martínez believes that ethereum's prospects remain bullish. He told market participants to keep an eye on the support zone between $2,700 and $3,000. According to him, this demand zone must hold to maintain the bullish outlook for eth.
At the time of writing, ethereum is trading at around $3,200, down 4% in the last 24 hours, according to <a target="_blank" href="https://coinmarketcap.com/currencies/ethereum/” target=”_blank” rel=”nofollow”>data from CoinMarketCap.
Featured image from Adobe Stock, chart from Tradingview.com
