Bitcoin’s explosive run past $124,000 last week pushed crypto markets into uncharted territory, and many investors quickly turned their attention to Ethereum.
Traders had hoped the second-largest cryptocurrency would soon reclaim its all-time high from 2021. Instead, ETH stumbled, sliding from $4,700 down to the $4,200 zone after U.S. economic data sparked broader selling pressure.
Now, the big question is whether Ethereum can stabilize and catch a second wave of momentum — or whether this correction signals deeper weakness ahead.
Treasury Demand Driving ETH
Research firm Matrixport argues that Ethereum’s recent rise hasn’t been fueled by retail frenzy, but by a growing wave of institutional activity.
In particular, new treasury companies dedicated to holding Ethereum have provided a steady source of demand. This trend mirrors the earlier role of corporate treasuries in driving Bitcoin adoption, giving ETH a potential long-term support base.
ETF inflows have also played a major role. Since the launch of spot Ethereum ETFs, capital has been steadily flowing in, strengthening the bullish outlook. However, Matrixport points out that activity on the Ethereum network itself — measured by transactions, gas usage, and DeFi participation — hasn’t kept pace with the price surge. That disconnect could limit ETH’s upside if institutional demand slows.
The $4,180 Level to Watch
From a technical standpoint, Ethereum is testing a key support level at $4,180. Analysts warn that losing this floor could open the door to sharper declines, potentially dragging ETH back toward the $3,800–$3,900 region. Holding above this level, however, would give bulls the chance to regroup and push higher, with $4,700 and then $5,000 seen as the next major targets.
What’s Next for Ethereum?
The coming weeks will likely determine whether Ethereum can ride Bitcoin’s momentum to fresh records or whether the pullback deepens. Sustained treasury accumulation and continued ETF inflows could help ETH regain strength, but weak network fundamentals remain a concern.
For now, the market is caught between two forces: institutional money flowing in at scale and technical risks that could trigger another wave of selling. Ethereum’s battle around the $4,180 support may well decide the tone for the rest of the year.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/ethereum-at-a-crossroads-can-it-follow-bitcoin-to-new-highs/