Ethereum (ETH), the world’s second-largest cryptocurrency by market capitalization, has had a rocky start to the year, plunging over 30% year-to-date to trade at $2,261 at press time.
However, the cryptocurrency has rebounded nearly 9% from its March 4 sell-off, regaining some lost ground.
The downturn erased gains from a short-lived rally triggered by Trump’s March 2 announcement of a strategic crypto reserve, which initially included XRP, Solana (SOL), and Cardano (ADA), with Trump later expanding the list to Bitcoin (BTC) and Ethereum, calling them the ‘heart of the reserve.’
Yet, Ethereum’s near-term trajectory remains uncertain, with investors divided on whether the rebound marks the start of a sustained recovery or just another temporary bounce within a broader downtrend.
Finbold AI predicts Ethereum price target for March 31
Finbold’s AI-powered prediction tool has provided an updated outlook for Ethereum’s trajectory leading up to March 31, 2025. Factoring in technical indicators and market trends, the model forecasts an average ETH price of $2,809.5, marking a 24.02% increase from its current level of $2,261.
Despite the bullish projection, AI models remain divided on Ethereum’s trajectory. The most optimistic outlook, generated by Claude 3.5 Sonnet, predicts a 30.23% surge, which could see ETH testing levels above $2,945 in the coming weeks.
Conversely, GPT-03 Mini offers a more cautious outlook, forecasting a 15.08% increase, which would place ETH around $2,606 by the end of the prediction period.
Ethereum’s broader landscape
Ethereum’s regulatory landscape and upcoming network upgrades could play a crucial role in shaping its next market shift.
The highly anticipated Pectra upgrade, scheduled for April 2025, recently went live on the Sepolia test net. Designed to enhance scalability, transaction speeds, and cost efficiency, this upgrade could further drive demand for ETH.
Meanwhile, institutional interest in Ethereum is on the rise. World Liberty Financial (WLFI), a decentralized finance platform backed by Donald Trump, has significantly increased its ETH holdings, now holding $16.14 million in Ethereum, alongside $14.65 million in Wrapped Bitcoin, according to Arkham Intelligence.
On-chain metrics further support the bullish case. The MVRV ratio (Market Value to Realized Value) has dropped below 1, historically signaling an undervalued price zone and a potential buying opportunity near the average acquisition cost of holders, including whales.
Moreover, there has been a sharp increase in ETH accumulation addresses, indicating large-scale institutional accumulation at current levels.
From a technical perspective, Ethereum’s price action mirrors its 2016 fractal, where a consolidation phase preceded a major breakout. If this historical pattern repeats, Ethereum could be gearing up for a significant rally, making its current price levels an attractive entry point for long-term investors.
Featured image via Shutterstock
