Ethereum experienced a surprising and unexpected drop in performance at the close of 2024, failing to surpass $3,500 and continuing into early 2025 when momentum dwindled significantly. Many Ethereum investors have taken note, prompting some to question whether now might be an ideal time to sell off assets they own.
Ali Martinez, an influential crypto analyst on social media platform X, conducted a detailed examination of Ethereum’s future prospects in an analysis posted January 31. Ali examined Ethereum’s recent price trends and on-chain data to provide insight into its short-term trajectory.
What’s Next for Ethereum’s Price?
Martinez expressed concern at Ethereum falling below its MVRV Ratio (160-day moving average), a metric designed to determine whether cryptocurrency prices are overvalued by comparing market cap with realized cap. A similar event heralded an unexpected 40% correction earlier, raising concerns of similar outcomes now.
Investor sentiment has been drastically affected by expectations of an imminent price drop for Ethereum, leading long-term holders to sell off more of their holdings than before. Glassnode data shows this selloff may open the way for significant price correction. Martinez identified a support zone between $2,230 and $2,610 where approximately 12 million wallets hold approximately 62.27 million ETH that could act as a buffer against further drops.
Technical analysis indicates Ethereum to be in an inverse head-and-shoulders pattern with critical support at between $2,800 and $3,000. If this holds, Martinez predicts it could aim for the $4,000 neckline – an unbroken resistance level for four years that remains unbroken despite whale activity involving over 100,000 ETH purchases which increase chances of breaking past this threshold.
Should Ethereum break through its current resistance level of $4,000, Martinez anticipates an incredible rally that could reach $6,770 — representing an increase of more than 100% over its current position.
Ethereum Price Overview
Ethereum currently trades at approximately $3,315, having seen an increase of more than 2% over the course of 24 hours.