Ethereum Price Rebounds: Analysts Predicts Bullish Breakout Above $5k

Ethereum (ETH) price has bounced back strongly from the $2,920 low recorded on January 13. This has sparked optimism for a bullish breakout. The crypto is now trading above $3,100, showing signs of recovery. As it moves toward key resistance levels it could pave the way for a new all-time high (ATH) in 2025.

Ethereum Price Reaches Critical Accumulation Zone

ETH retested the $2,800-$2,920 zone, which is considered by analysts as the ‘ultimate buy zone’. Based on IntoTheBlock data, this price range has been the major support level. It is also accompanied by the increase in buying pressure.

CrediBULL Crypto crypto analyst said that Ethereum was trading within the $2,800-$4,000 area for almost ten months in 2024. This should be the case because there comes a time during accumulation that may lead to a breakout. It has been seen in the recent Bitcoin price rally.

ETH could then be expected to retest the support zone near $3,000. A successful rebound from it could open up the $4,000 level, implying a 30% move from the current price.

This was echoed by Rose Premium Signals. He predicted for ETH especially because Ethereum price is recovering swiftly from the $2,947.83 support area. Price targets have been put at $4,103.26, $4,788.46, and $5,568.18 showing the positive side of the coin for Ethereum and an indication that prices may rise even further.

If Ethereum can break the $4,000 barrier and hold it. Analysts believe that it could continue its ascent toward its former high of $4,879 and possibly climb to $5,000 by 2025.

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Funding rates recovery signals a return to bullish trend

The funding rates of Ethereum, which is the cost of carrying long or short positions on the perpetual futures contracts, have also seen a rebound. ETH fell under the $3,000 mark, funding rates went negative according to data from CryptoQuant, showing bearish sentiment among traders.

However, the funding rates have recovered near the $3,000 level, indicating a resurgence in buying interest. This shift is an indication that more traders are buying or going long expecting the price to rise even more. If this trend continues, it may provide further backing to ETH on its path to a bullish turn.

On the other hand, a bearish pressure may be indicated by a change in funding rate momentum. It can push ETH below the $2,800 level.

Market sentiment increased on the back of economic events

Cryptocurrencies and other global markets have been supported by the news that Trump’s economic advisors are planning a gradual approach to tariffs. With reduced trade worries, investors became more willing to take risks, increasing demand for riskier assets like cryptocurrencies.

The dollar index fell for the first time in six days, global stocks and Ethereum began to stabilize. Experts suggest that further improvement of the economic outlook will allow the Federal Reserve to cut interest rates, which will positively affect digital currencies including ETH.

Traders are also paying a lot of attention to the inflation data which is scheduled to be released in the U.S. in the near future as this may help to predict the further actions of the Fed and its consequences for the further dynamics of the Ethereum rate.

Levels to keep an eye on in Ethereum price

Ethereum remains near $3,200 as the next significant barrier is at $3,400 which is also in line with the 50-day EMA. A breakthrough of this level will make it easier for ETH to target the $4,000 level again, a level that is crucial for the further rise.

If ETH breaks through the levels outlined by Rose Premium Signals at $4,103.26, $4,788.46 and $5,568.18 then this will be a new high for Ethereum and will only serve to reaffirm the bull trend.

To the downside, if ETH fails to maintain strength above $3,000, it could retest the $2,800–$2,400 range, a historically strong demand area where more than 61 million ETH had been accumulated.