Potential Ethereum (ETH) Price Dip Now Could Pave Way for Q2 2025 Recovery, Predict Experts

Ethereum's Rollercoaster Ride: Despite the Dips, Big Investors Remain Optimistic

Potential Ethereum (ETH) Price Dip Now Could Pave Way for Q2 2025 Recovery, Predict Experts

Table of Contents

Toggle* Ethereum's Price Plummets to $1,700-$1,777 - A 5% Drop in 24 Hours* Gigantic Investors (Whales) Are Piling Up on Ethereum Despite the Price Plunge* Current Price Patterns Mirror Ethereum's 2020 Reversal Trend* Some Analysts Predict a Parabolic Rally in Q2 2025* Technical Resistance Levels Exist at $1,820-$1,850, with Support at $1,750

The cryptocurrency market took a nosedive following President Trump's retaliatory tariff announcement, shedding over $140 billion in just 24 hours. Ethereum, the second-largest cryptocurrency by market capitalization, wasn't immune to this downturn, experiencing a 5% drop.

Ethereum is currently trading at around $1,777, a significant decline from its New Year's Day price of nearly $3,350. This latest drop has Ethereum flirting with setting brand-new cycle lows in the $1,700 range, with some analysts warning it might plummet further to the $1,200 range if current support levels crumble.

Ethereum is now trading below the $1,820 level and the 100-hourly Simple Moving Average, suggesting sustained bearish pressure in the short term.

Whale Accumulation Indicates Long-term Hopefulness

Despite the gloomy market atmosphere, massive investors – often known as "whales" – have been actively gobbling up Ethereum.

Data reveals that wallets holding between 10,000 and 100,000 ETH have been rapidly augmenting their holdings since early 2025. Analyst CryptoGoos shared charts illustrating this whale accumulation trend, arguing that Ethereum is "far too undervalued" at its current price levels.

This accumulation pattern is particularly intriguing because it persists even as Ethereum's price plummets throughout 2025.

Historical Patterns Suggest Recovery May Be on the Horizon

Crypto analyst Mister Crypto suggests that Ethereum may soon witness a dramatic momentum shift. The analyst draws parallels between Ethereum's current price action and its 2020 trajectory.

According to Mister Crypto, if history repeats itself, Ethereum could see robust bullish momentum in Q2 2025.

Another cryptocurrency analyst, Crypto Caesar, noted that Ethereum is likely approaching a bottom. He points out that it's currently trading near the same price level it held four years ago.

However, CryptoBullet highlighted a potential concern: Ethereum has now brushed up against the 300-week moving average for only the second time in its history. This event historically signals a bearish trend.

Technical Analysis Reveals Crucial Resistance Levels

For Ethereum to kick-start a recovery, it has to hurdle several technical obstacles. The price is confronting resistance near the $1,810 level, with a short-term bearish trend line formation.

The next significant resistance is at the $1,840 level. A clear break above the $1,880 resistance could propel the price towards the $1,920 level.

If Ethereum can break above the $1,920 resistance, it might continue its climb toward the $2,000 or even $2,050 price zone in the near term.

Initial support on the downside is near the $1,765 level, with strong support at $1,750. If this support fails, the price could fall towards $1,720 or even $1,680.

Market expert Cryptododo7 has set bearish targets even lower, predicting that Ethereum might reach the $1,130 to $1,200 range before recovering.

Despite these bearish outlooks, market commentator Titan of Crypto maintains that Ethereum is still on track to hit new all-time highs later this year.

The hourly MACD for ETH/USD is gaining momentum in the bearish zone, while the RSI remains below the 50 zone. These technical indicators suggest continued downward pressure in the immediate future.

Insights:

1. Institutional investors have shown renewed interest in Ethereum, with substantial inflows into ETH-based products, such as a record $321 million in inflows in a recent week[1][4].
2. The derivatives market supports Ethereum's bullish outlook, with open interest in ETH futures nearing all-time highs. This, coupled with positive funding rates and a favorable long/short ratio, suggests sustained demand and optimism among traders[1].
3. Major corporations, like btcs and Fidelity, have expanded their ETH holdings, further indicating confidence in Ethereum's long-term potential[1].
4. On-chain data reveals that whales and high-net-worth individuals are actively accumulating Ethereum, which can positively influence market dynamics[5].
5. Analysts see a possibility of Ethereum reaching $2,700 or higher in the short term, driven by ETF inflows and improving fundamentals[3].
6. Ethereum's price is currently at $2,600, with a critical resistance level at $3,000. A sustained bullish momentum could push the price towards this level, while a potential breakdown below $2,500 might trigger a retracement towards the 200-day SMA near $2,377[1][2].

Investors in the financial sector, including whales, continue to show faith in cryptocurrency by increasing their investments in Ethereum, even as it experiences a 5% drop, a signal that these big players may see Ethereum's current low prices as an opportunity for future gains. Despite the ongoing technical resistance at $1,820-$1,850 and the potential for further price declines, some analysts remain optimistic about a possible parabolic rally in Q2 2025, predicting that Ethereum's price may reach higher levels in the short term due to factors such as ETF inflows and improved fundamentals.

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