Ethereum (ETH) could be on the verge of a significant rally if it manages to maintain its key support above $2,400. Despite recent market volatility, analysts believe Ethereum is setting the stage for an upside movement in the coming weeks. Here’s a simplified breakdown of the current ETH outlook and what’s driving renewed optimism among traders and investors.
Holding Strong Above $2,400
Ethereum has been showing resilience by holding above the crucial $2,400 level. According to crypto analyst Michaël van de Poppe, this price point is a key range low. If ETH remains above it, there’s a strong chance it could “test the other side of the range,” meaning it might retest higher levels last seen in mid-June.
“So far, so good for ETH,” van de Poppe said in a post on X (formerly Twitter). At the time of writing, Ethereum is trading around $2,452, still down 7.45% over the past 30 days but showing signs of stability after a sharp drop caused by geopolitical tensions earlier in the month.
Signs of a Reversal Ahead
Multiple indicators point toward a potential reversal in Ethereum’s recent downtrend. One such signal is the ETH/BTC ratio, which shows how Ether is performing against Bitcoin. This ratio has dipped to 0.02275, down 6.84% in the past month. However, some analysts believe this decline may soon reverse.
Crypto analyst Crypto Fella noted, “It’s almost time for the long-expected reversal.” A strengthening ETH/BTC ratio typically signals growing interest in Ethereum and can precede a broader altcoin rally.
In support of this bullish outlook, large investors often referred to as “whales” have started accumulating ETH. On June 16, whales bought a staggering 1 million ETH in a single day, according to data from Glassnode. This marked the largest daily ETH purchase since 2018, indicating growing confidence among institutional and high-net-worth investors.
ETF Inflows Signal Growing Retail Interest
Retail interest in Ethereum has also been on the rise. Spot Ethereum Exchange-Traded Funds (ETFs) have recorded steady inflows, suggesting that everyday investors are also seeing potential in ETH.
According to data from Farside, on Wednesday alone, spot Ether ETFs saw $60.4 million in inflows, contributing to a three-day total of $232.4 million. This follows a historic 19-day streak of consecutive ETF inflows that ended on June 14.
These inflows reflect growing demand for Ethereum exposure via traditional investment products, a positive sign for broader adoption and price support.
Historical Weakness vs. Present Optimism
Historically, the third quarter (Q3) has been Ethereum’s weakest, with average returns of just 0.88% since 2014, based on CoinGlass data. This seasonal trend may cause concern among some traders.
However, sentiment appears to be shifting this year. Analyst Brian Quinlivan from Santiment mentioned that “more and more eyes have turned to Ethereum” since markets began recovering in mid-April. ETH has been gradually “playing catch-up,” and analysts believe the altcoin might finally be ready to take the lead.
Still, not all experts are convinced this means a full-blown altcoin season is ahead. While Ethereum’s rise often signals gains in other altcoins, Crypto Fella warned that this cycle’s altcoin season “may be more limited than in the past.”
He advises investors to be selective, stating, “Make sure to hold the right alts, as not all of them will start running in the coming altseason.”
Ethereum’s current price action above the $2,400 support level has caught the attention of both institutional and retail investors. With large whale buys, steady ETF inflows, and bullish analyst predictions, the case for a potential rally is growing stronger.
Still, investors should be cautious, keeping in mind historical Q3 weakness and the possibility of a more muted altcoin season. If Ethereum can maintain its strength and break higher in the coming weeks, it could reignite excitement in the broader crypto market but timing and selection will be key for those looking to capitalise on the next wave.
