Ethereum is facing resistance near $2,500 after a 25% plunge. Can whale accumulations and rising staking interest fuel a comeback?
As Bitcoin stabilizes near the $88,000 mark after a massive crash, Ethereum has bounced back above $2,400. Currently, ETH trades at a market value of $2,478, with a short-term recovery of nearly 5%.
As the bullish turnaround retests a broken range, is Ethereum bound for a post-retest reversal, or will it surpass $2,500?
Ethereum Price Marks Crucial 4-Hour Range Breakdown
In the 4-hour price chart, the Ethereum price trend showcases a bearish breakdown of a consolidation range. The sideways consolidation ranged between $2,529 and $2,883.
Upon the breakdown, Ethereum tested a 24-hour low at $2,319. However, after a massive plunge, bearish exhaustion led to Ethereum’s short-term relief rally.
With a short-term bullish recovery, Ethereum is now retesting the broken consolidation range. However, the possibility of a new evening star pattern near the support-turned-resistance level warns of a bearish turnaround.
Furthermore, the Ethereum price failed to sustain above the $2,500 psychological zone, facing a higher price rejection from $2,530. Hence, the short-term price analysis hints at a potential bearish turnaround.
A Battle at $2,500
Meanwhile, the bullish comeback has resulted in a declining trend in bearish histograms. If Ethereum’s recovery continues, the Chaikin Money Flow Index, which has finally turned positive after days of consolidation, supports the possibility of a bullish reversal.
Hence, the technical indicators give a bullish viewpoint contrary to the threat of an evening star pattern.
The Worst February Ever
Amid the highly volatile conditions, the Ethereum price trend has marked its worst February since 2017. Till 2024, Ethereum had recorded only one bearish February in 2018, with a decline of 24%.
Ethereum Historical Performance
However, the recent plunge has marked a nearly 25% downfall in February 2025. This marks Ethereum’s second and possibly worst February ever if it fails to bounce back.
Whale Feast: Ethereum on Discount?
However, the chances of a bullish comeback for Ethereum are gradually increasing. As per a recent tweet by Crypto Jack, Ethereum balance by holder value has seen a significant surge. The balance range of 10,000 to 100,000 ETH has seen a notable increase, crossing the 17 million ETH mark.
WHALES ARE BUYING UNPRECEDENTED AMOUNTS OF $ETH! 🚀 pic.twitter.com/3ML22PPN2n
— CryptoJack (@cryptojack) February 25, 2025
This highlights a massive buying spree among whales to acquire Ethereum at discounted prices.
Staking Surge: A $5 Billion Confidence Boost
The total Ethereum staked over the Aave network has seen a significant surge. Over the past year, the Ethereum staking pool on Aave has surged from 500,000 ETH to more than 2,000,000 ETH.
Ethereum staking pool on AAVE surpassed 2,000,000 $ETH.
$5,000,000,000 👀 pic.twitter.com/iJJRzPwkQ0
— Ted (@TedPillows) February 25, 2025
This amounts to more than $5 billion in staked Ethereum. With investors staking Ethereum for rewards and agreeing to a brief lock-in period, this signals increased confidence in the largest altcoin.
Final Verdict
As per the price action analysis, a bullish rebound above the lower band of the broken consolidation zone at $2,530 will likely reinstate a new bullish trend. This will increase the likelihood of Ethereum rebounding to the $2,900 level.
Conversely, if Ethereum fails to hold above $2,360, a bearish breakdown could push prices back to the previous swing low of $2,150.
