Ethereum is hovering around $1,800 after a significant drop in Q1 2025. Technical signals indicate potential for reaching $2,100 as institutional interest surges with record ETF inflows. On-chain metrics suggest Ethereum is undervalued, while recent leadership changes at the Ethereum Foundation signal a strategic shift. Continued momentum will depend on holding above key support levels.
Ethereum is currently stabilising around the $1,800 mark following a significant drop of 45% in the first quarter of 2025. Despite earlier declines that saw the price peak at $3,579 in January, technical indicators now suggest that ETH has potential for a breakout, with a target price possibly reaching $2,100. Analysts are monitoring on-chain data and technical formations closely as a bullish trend appears to be developing.
Recently, Ethereum’s price corrected downward, dipping from $1,850 but found robust support just above $1,780. It has since been trading above this threshold and also above the 100-hourly Simple Moving Average, signalling that bullish activity remains strong. A short-term analysis highlights a contracting triangle on the hourly chart which shows resistance at $1,810; a solid breach above $1,850 could propel the asset towards targets like $1,920 or even up to $2,000.
In addition, recent price actions on Ethereum’s four-hour chart indicate that a bull flag formation is forming—a potential indicator of an upward move. If Ethereum manages to close above the flag’s upper limit at $1,800, forecasts suggest a possible target of $2,100, marking about a 15% gain from where it currently sits.
Moreover, institutional interest in Ethereum presents a strong backing for its price stability and potential growth. Inflows into spot Ethereum exchange-traded funds (ETFs) reached $151.7 million during the week ending April 25, the highest since February, followed by another $64.1 million on April 28. This shift ends a worrying eight-week stretch of withdrawals. James Butterfill from Coin Shares connects this trend to economic anxiety, stating that “concerns over the tariff impact on corporate earnings and the dramatic weakening of the US dollar are pushing investors towards digital assets.”
On-chain metrics also reveal significant insights into Ethereum’s current state. The MVRV Z-Score, which assesses market value against realised value, fell to -0.18 in March, usually signalling an ‘undervalued’ phase. Similarly, the Net Unrealized Profit/Loss ratio aligning at 0 indicates a capitulation state where unrealised profits equate to losses, typically a neutral point before market reversals.
Furthermore, Ethereum’s realised price averages at approximately $2,020, which is 10% above its present valuation, a reassuring sign that long-term investors are holding their positions. Despite the hefty drop in prices, only a slight 3% reduction in average realised price hints that short-term sellers have been responsible for the sell-off.
Ethereum continues to lead as the most utilised layer-1 blockchain, boasting a total value locked (TVL) of over $51.8 billion—up around 16% just this past week. Notably, protocols like Aave and Lido have observed gains ranging from 12% to 13.5%. Markets for distributed exchanges (DEXs) also saw a notable rise in trade volumes, improving from $9.7 billion to $12 billion weekly. The balance of stablecoins within the network has been rising steadily through the year, climbing from $111 billion to $124 billion amidst downward market conditions.
On the organisational front, the Ethereum Foundation welcomed new leadership with Hsiao-Wei Wang and Tomasz Stańczak taking up the role of co-executive directors as of April 28. The foundation plans to focus on scaling the Ethereum layer 1, developing layer 2 blobs, and improving user experience over the next year.
Looking ahead, if this positive momentum prevails, Ethereum may probe various resistance levels with ambitious short-term targets of $2,101, and medium to long-term goals starting from $2,300, ascending to potentially $4,400 if conditions remain favourable. However, this bullish outlook hinges on Ethereum maintaining the $1,800 support and clearly breaking above $2,000 to validate upward potential in the coming months.
