Ethereum (ETH) bounced off the $2,500 level on Wednesday and shows signs of continuing this bull reversal attempt while altcoins undergo correction. This shift in dynamic could suggest that Ethereum price is attempting to revisit $4,000. Another reason for ETH’s resilience and new-found momentum could be declining Bitcoin dominance, which shows signs of a further correction.
Ethereum Price Today Bounces While Bitcoin Dominance Drops 6%
Bitcoin dominance has crashed 6% in the past 11 days, indicating that capital is migrating to rest of the crypto market. Often declining Bitcoin dominance has seen the start of an alt-season phase in which Ethereum price gains tend to go parabolic.
With Bitcoin’s market share dropping and ETH’s value up 1.33% today, investors can expect the ongoing bounce to extend, potentially to key psychological levels such as $3,000 and $4,000 or all-time highs (ATHs).
Ethereum price forecast is bullish, but will technical analysis support ETH to revisit $4,000?
Ethereum Technical Analysis: Will ETH Price Hit $4,000?
The three-day chart shows Ethereum price is up 27% since the February 3 swing low of $2,125. This bounce is likely going to continue as Bitcoin dominance falls. The next key resistance zone stretches from $3,119 to $3,285, encapsulating the 50-day and 200-day SMAs and the previous monthly Volume Weighted Average Price (VWAP).
Overcoming this hurdle will set the stage for extending Ethereum price to revisit the equal highs formed at $4,093. A sweep above this level will trigger a buying spree due to short liquidations and catalyze another leg up to retest the ATH at $4,868.
On the other hand, a breakdown of the $2,500 support level will invalidate Ethereum price’s bullish thesis. In such a case, ETH could crash 18% and revisit $2,044.
It is not just Bitcoin dominance and Ethereum price analysis forecasting a bullish outlook for ETH. There are multiple outlooks, all of which suggest the altcoin is primed for a comeback.
Ethereum Foundation Transfers 30,800 ETH For DeFi Activities, Alleviating Selling Pressure
After the community lashed out, the Ethereum Foundation took the feedback and transferred 30,800 ETH to Aave for Defi-related activities, including staking, lending, borrowing etc. This is a fundamentally bullish outlook as this reduces the selling pressure from the foundation actively selling its ETH to fund day-to-day operations.
EF Treasury has deployed:
– 10,000 ETH into Spark
– 10,000 ETH into Aave Prime
– 20,800 ETH into Aave Core
– 4,200 ETH into CompoundWe’re grateful for the entire Ethereum security community that has worked diligently to make Ethereum DeFi secure and usable!
— Ethereum Foundation (@ethereumfndn) February 13, 2025
In other news, Goldman Sachs acquired $100 million worth of ETH ETFs split between BlackRock and Fidelity, upping its holdings to $600 million. While it is still unclear if Goldman Sachs is custodying customer funds or its holdings, this is a bullish development.
Frequently Asked Questions (FAQs)
Bitcoin dominance has crashed 6% in the past 11 days, indicating a shift in capital allocation. This decline often marks the beginning of an alt-season, where Ethereum price tends to gain momentum.
The next key resistance zone stretches from $3,119 to $3,285, encapsulating the 50-day and 200-day SMAs and the previous monthly Volume Weighted Average Price (VWAP).
A breakdown of the $2,500 support level will invalidate Ethereum price’s bullish thesis, potentially leading to an 18% crash and revisiting $2,044.
Akash Girimath
Senior Cryptocurrency Analyst & Market Strategist
Engineer-turned-analyst Akash Girimath delivers data-driven insights on cryptocurrency markets, DeFi, and blockchain technology for platforms like AMBCrypto and FXStreet. Specializing in technical analysis, on-chain analytics, and risk management, he empowers institutional investors and retail traders to navigate market volatility and regulatory shifts.
A hands-on strategist, Akash merges active crypto portfolio management with research on Web3, NFTs, and tokenomics. At AMBCrypto, he led cross-functional teams to redesign content frameworks, achieving record-breaking traffic growth through scalable editorial strategies. His analyses dissect market sentiment, investment strategies, and price predictions, blending macroeconomic trends with real-world trading expertise.
Known for mentoring analysts and optimizing workflows for high-impact reporting, Akash’s work is cited across global crypto publications, reaching 500k+ monthly readers. Follow his insights on YouTube, X, and LinkedIn for cutting-edge perspectives on decentralized ecosystems and crypto innovation.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/ethereum-price-likely-to-revisit-4000-as-bitcoin-dominance-crashes-6/
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