Ethereum: Most Undervalued in 17 Months — Can ETH Reach $4K Again?

Ethereum’s Journey: Can It Reach $4,000 Again?

Ethereum, the second-biggest cryptocurrency, has had a tough time lately. Despite this, some experts think Ethereum is currently underpriced, giving investors a chance to buy now. Let’s look at Ethereum’s current situation, its potential for growth, and if it can reach $4,000 again.

Ethereum’s Current Situation

Ethereum’s price has been up and down, recently reaching $2,295 after going below $2,000[1][3]. However, the overall market trend is still going down, with more Ethereum being supplied and more being held on exchanges, putting pressure on prices[2]. In the past month, the amount of Ethereum in circulation has increased by 66,350 ETH[2].

Also, there have been big money withdrawals from Ethereum ETFs, with $63.3 million taken out of the ETHE fund on March 5, 2025[5]. This shows that investors are feeling bearish and are changing their investments.

Ethereum’s Potential for Growth

Even with these challenges, there are signs that Ethereum could make a comeback. In the past, when many Ethereum holders were losing money, it often led to big price increases[2]. Analyst Brian Quinlivan from Santiment thinks Ethereum could do well in 2025 because of how it has done in recent years[2].

Ethereum’s ability to change and adapt, like with upgrades like the Pectra upgrade, could make it more valuable in the long run[1]. But these upgrades also have their own problems, which could affect when Ethereum’s price goes up[1].

Can Ethereum Reach $4,000 Again?

For Ethereum to get back to $4,000, it needs to overcome some big obstacles. It must break through its current resistance levels and keep going up. This would need a big change in what people think about Ethereum, maybe because more people start using it or because of big technological advancements[3][4].

Ethereum also needs to deal with the problem of more Ethereum being supplied and more being held on exchanges. If these things decrease, it could help stabilize prices and make it easier for Ethereum to grow[2].

Lastly, Ethereum’s success will depend on how it handles broader market conditions. Global economic factors and changes in rules can greatly affect cryptocurrency prices, so Ethereum needs to be strong and able to handle these challenges[2][4].

Conclusion: A Way Forward

In conclusion, even though Ethereum has big challenges, its current underpricing gives long-term investors a chance. To reach $4,000, Ethereum needs to overcome supply pressures, improve what people think about it, and be strong in a volatile market. As Ethereum keeps changing and innovating, it’s a cryptocurrency to watch in the coming months.

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Sources:
– CoinStats
– The Currency Analytics
– FOREX24.PRO
– Blockchain.News