If this basic condition is met, Ethereum (ETH) could rally in double digits

Can ETH make a decisive comeback, or will the bears hinder this move?

The second most popular cryptocurrency has been doing very well lately, with its price up nearly 10% in the past two weeks.

A number of prominent analysts see the potential for further gains, although they stress that it will be important to hold a key support level.

$2,500 and beyond?

Ethereum (ETH) briefly rose to a monthly peak of around $2,200 before falling back slightly to the current $2,120 (according to CoinGecko). According to well-known crypto commentator Ali Martinez, the asset is “ready to break out” and is putting pressure on the upper boundary of the channel. He believes a solid close above $2,147 could open the door to a significant rally to $2,335 or even $2,542.

Shortly after, Martinez made another statement related to ETH, claiming that MVRV’s price bands show that the asset has reached a level that has historically coincided with market bottoms.

X users Ted and Investor Jordan are also optimistic. The former suggested that a daily close above $2,150 could lead to resistance to the $2,400 area. At the same time, he warned that failure to do so would lead to a retest of the psychological level of $2,000. For his part, Investor Jordan stated that ETH is starting to “heat up” and added that they are currently “hateful” on the cryptocurrency.

Some indicators of the chain support the scenario of further growth. The supply of ETH held on exchanges, for example, has dropped to around 15.93 million tokens today (March 5), the lowest point since the summer of 2016. This development suggests that a growing number of investors are abandoning centralized platforms and transferring their assets to self-funding, thus reducing the pressure of immediate sales.

Will the Southern Tour begin again?

Other market watchers, such as X user Emirhan, offered very pessimistic results. They pointed to 2,109 as a key level, assuming a break below could lead to a decline to $1,900.

You may also like:

Furthermore, ETH’s Relative Strength Index (RSI) temporarily crossed the low of 70. This indicator helps traders identify potential reversal points by measuring the speed and magnitude of recent price changes. Readings around 70 and above indicate that the asset is overbought and may be headed for a pullback, while anything below 30 is considered bullish territory.