Ethereum's price trajectory for 2025 has become a focal point of discussion following its inclusion in Donald Trump's newly announced US Crypto Reserve. The second-largest cryptocurrency currently trades around $2,200.
Most analysts expect ETH to break from its prolonged sideways pattern. Some predict a continued correction before any significant movement.
Technical analysis of Ethereum's weekly chart shows bullish indicators. The cryptocurrency maintains a major support zone between $1,900 and $2,300.
This zone includes the psychologically important $2,000 level. ETH has consistently reacted to this price point since first reaching it in February 2021.
The weekly chart shows Ethereum reacting to the 200 Exponential Moving Average. Bitcoin recently bounced off this same indicator on its daily chart, suggesting Ethereum may follow suit.
Blockchain analytics firm Glassnode reports substantial accumulation at the $1,900 price point. Long-term investors have purchased over 1.82 million ETH at this level since August 2023. Ethereum has traded within a rectangle pattern between $2,000 and $4,000 for nearly a year. A breakout above the $4,000 ceiling could potentially push ETH to $6,000, based on pattern dimensions.
Short-term indicators on daily and 4-hour timeframes present a more bearish outlook. Both major moving averages slope downward, suggesting institutional buyers remain hesitant.
Today's 5.75% price increase likely stems from Ethereum's selection for Trump's Crypto Strategic Reserve. It was one of only five cryptocurrencies included.
Trump's crypto company, World Liberty Financial, holds over $200 million in Ethereum. This represents approximately 65% of the firm's $300 million cryptocurrency portfolio.
Ethereum's status as one of only two cryptocurrencies with spot ETFs enhances its investment profile. BlackRock's selection of Ethereum for its tokenized money market fund further validates the platform.
The upcoming Pectra upgrade represents another potential catalyst. Successfully deployed today on the Sepolia testnet, the mainnet launch is expected in April.
Pectra will introduce eleven major features to improve user experience, affordability, and efficiency. The validator staking limit will increase from 32 ETH to 2,048 ETH. This change allows validators to compound earnings and may reduce selling pressure over time. Additional improvements include batched transactions, gas sponsorship, spending limits, and new recovery mechanisms.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.