Ethereum Rebounds Strongly by Over 14%, Sparking Market Discussions on Future Trends

Recently, Ethereum (ETH) has shown strong rebound momentum, with prices soaring more than 14% in 24 hours, rapidly climbing from a low of about $1,550 to the $1,750-$1,800 range. This performance has not only ignited enthusiasm in the cryptocurrency market, but also sparked intense discussions among investors about the future trend of ETH.

Market background of ETH rebound

The 14% increase in Ethereum is not an isolated incident, but closely related to the recent overall rebound in the crypto market. Bitcoin (BTC) price broke through $90,000, reaching a new milestone, driving the total market value of the crypto market back above $3 trillion. As one of the market indicators, ETH has attracted a large amount of funds flowing in. According to on-chain data, ETH’s 24-hour trading volume surged by 27% to approximately $1.5 billion, demonstrating a significant recovery in investor confidence.

In addition, global risk appetite in the financial markets has improved. The US stock market has recently stabilized, with particularly strong performance in the technology sector, providing a favorable environment for high-risk assets such as cryptocurrencies.

At the same time, the market is looking forward to the upcoming Ethereum Pectra upgrade, which will further enhance the network’s scalability and efficiency, consolidating Ethereum‘s leading position in the smart contract and decentralized applications (DeFi) field.

It is worth noting that the supply of ETH on the exchange has been continuously decreasing, with the current balance only 18.3 million coins, hitting a 9-year low. This indicates that more holders choose to transfer ETH to cold storage or participate in staking, reducing the selling pressure in the market and providing support for price increases.

Technical Analysis: Key Levels and Trend Outlook

From a technical perspective, the rebound of Ether shows strong momentum, but it still needs to break through key resistance levels to confirm the long-term trend. Here is an analysis of several key points:

Support and Resistance: ETH successfully broke through the resistance level of $1,680 in this round of rebound and stabilized at $1,750. In the short term, the $1,850-$2,000 range will be the next important resistance area.

If ETH can break through $2,000 and stay above the 200-day moving average (around $1,990), it may further test the historical resistance level of $2,250 or even higher at $2,500. Conversely, if it fails to hold the support at $1,570, the price may retrace to the range of $1,490-$1,400.

Technical indicators: The Relative Strength Index (RSI) has rebounded from the oversold area (21) on March 31 to 56, indicating enhanced buying momentum, but has not yet entered the overbought area (above 70), implying there is still room for upward movement. The MACD indicator has also shown a golden cross, indicating a short-term bullish trend.

Trading Volume: With the rise in price, the on-chain transaction volume and exchange trading volume of Ethereum (ETH) have significantly increased, reflecting the enhancement of market participation. However, if the subsequent trading volume fails to sustain the increase, it may limit the continuity of the rebound.

Overall, Ethereum is expected to continue its rebound in the short term, but breaking through $2,000 will be a key test. Investors should closely monitor changes in trading volume and the gains and losses of key levels.

Fundamental Driving Factors: Ethereum’s Long-term Value

The rebound of Ethereum is not only driven by market sentiment, but its fundamental advantages also provide solid support for prices. Here are several key factors:

The catalytic effect of the Pectra upgrade: Ethereum’s Pectra upgrade is expected to go live on the Holesky testnet in 2025 and eventually be deployed to the mainnet. This upgrade will optimize Ethereum’s Layer 1 performance, increase transaction throughput, and reduce gas fees. This is crucial for the continued development of ecosystems such as DeFi, NFT, and GameFi, and is expected to attract more developers and users.

The ecological advantages of DeFi and NFT: Ethereum remains the absolute leader in the DeFi and NFT fields. According to DefiLlama data, the Total Value Locked (TVL) on the Ethereum network accounts for over 60% of the total, far exceeding other public chains. In addition, the NFT market (such as OpenSea) continues to be dominated by Ethereum, consolidating its ecosystem barriers.

Institutional Fund Inflows: Since 2024, Ether-based spot ETFs have been approved in the U.S. market, attracting a large amount of institutional fund inflows. According to the CoinShares report, ETH-related investment products have seen net inflows of over $200 million in the past month, providing additional support for the price.

Staking and deflation mechanism: After Ethereum completes the merge and transitions to the PoS mechanism, the amount of ETH staked continues to grow, with over 28% of ETH currently locked in staking contracts. At the same time, the burning mechanism of EIP-1559 gives ETH a deflationary characteristic during periods of high transaction volume, further enhancing its scarcity.

Risks and Challenges: The sustainability of the rebound is in doubt

Despite the rebound of ETH being exciting, the market still needs to be wary of potential risks:

Macroeconomic Uncertainty: The global economy faces multiple challenges, including US tariff policies, geopolitical tensions, and inflationary pressures. These factors may lead to increased volatility in risk assets, with Ether struggling to stand alone as a high-volatility asset.

Market sentiment fluctuates: The current Fear & Greed Index for the crypto market is 34, still in the ‘Fear’ zone, indicating that investor confidence has not fully recovered. Some users on Gate.io platform warned that Ether (ETH) may face pressure near $1,840 before pulling back to $1,490-$1,400.

Competitive Pressure: While Ethereum dominates in Layer 1, the rise of high-performance public chains such as Solana and Avalanche poses a threat to its market share. If Ethereum fails to continuously improve in scalability and cost, it may affect its long-term competitiveness.

Conclusion

Ethereum’s 14% strong rebound not only reflects the market’s confidence recovery, but also highlights its unique value as a core asset in the crypto market. From technical upgrades to ecological advantages, Ethereum’s fundamentals have laid a solid foundation for its long-term growth.

However, investors need to remain rational, be vigilant of short-term rebound risks, and closely monitor changes in macroeconomics, on-chain data, and key levels. In the crypto market full of opportunities and challenges, the future of Ethereum is worth looking forward to, but successful investment requires prudent judgment and flexible strategies.

Disclaimer: This article is for market analysis only and does not constitute investment advice. The cryptocurrency market is volatile, so investment should be cautious. It is recommended to develop a trading plan based on your own risk tolerance.