Great news for the crypto community! Ethereum, the second-largest cryptocurrency by market cap, has finally perked up after being stuck in a two-month slump. This has reignited hope among crypto enthusiasts who had lost faith in its triumphant comeback.
This month, analysts from Santiment recognized two positive trends for ETH. First, they pointed out high social media engagement. Discussions about Ethereum now make up 9.2% of total crypto-related conversations, indicating a renewed interest in the asset. Second, analysts found out that exchange reserves had dwindled. Over the past two weeks, exchange balances have dropped to 7.69 million tokens (worth $20.5 billion), representing 6.38% of ETH in circulation.
Santiment experts confirm that large ETH withdrawals from exchanges are generally bullish since they reduce the risk of a sudden price dump. However, Ethereum's technical chart still paints a grim picture. Since December 17, 2024, the ETH market has been dominated by a bearish trend, causing the asset to plunge by 35%. After hitting a bottom at $2,117, Ethereum stabilized above $2,600 and has been slowly recovering.
Nevertheless, many analysts remain cautious, stating it is too early to acknowledge a trend reversal. The Ethereum price has yet to break through the descending trendline. The question is whether the bulls will manage to smash the key resistance at $3,000. If the buyers fail to overcome this, the price may fall into an even deeper coma, experts warn.
