Ethereum Price Analysis – ETH Could Rally to $2900 as Critical Support Holds

Highlights:

• Ethereum is showing strength after hitting $2730.1 support 
• Ethereum rally off $2730.1 could see price hit $2900 in the short term
• Marketwide factors and Ethereum fundamentals could trigger such a price rally

Ethereum (ETH) is in a correction today, reflecting the broader cryptocurrency market. At the time of going to press, Ethereum was trading at 2.47% to trade at $2740.25. However, Ethereum trading volumes have dropped by 3.32% to $29.72 billion. This could indicate that Ethereum holders are not selling their holdings despite the correction across the market. Such a dynamic could slow down Ethereum’s correction relative to the rest of the market. Multiple reasons could motivate Ethereum investors to hold despite the ongoing price correction.

Ethereum Fairly Priced Unlikely to Record Any Significant Correction

One of them is that Ethereum has yet to recover from its recent correction fully. Only recently has Ethereum dropped to around $1300, and investors took advantage of the dip in large numbers. Since the price is yet to rally significantly, the average Ethereum holder would not experience much of a drawdown even if the price dropped below $2000.

Having lagged Bitcoin for oh so long, the presumption is that Ethereum is a good catch-up trade here…

The $4100+/- level (see chart below) is a reasonable price objective, by our work.

Website: https://t.co/RRxJAeLK6m pic.twitter.com/pl3Ht7Oq8D

— Carter Braxton Worth (@CarterBWorth) June 11, 2025

At the same time, Ethereum has underperformed throughout this cryptocurrency cycle so far. Unlike many top altcoins, which recently hit new highs and could face significant corrections from profitable holders if bears set in with force. The average Ethereum could be trading at its actual value with little room for a correction, even if there is a marketwide shakeout. 

Ethereum Is A Safer Altcoin In the Event Bears Take the Market

Besides, if the bears are in and the market is headed for a similar correction to what happened in 2021, Ethereum would be one of the safest altcoins to hold. That’s because, unlike smaller altcoins that can lose 70% to 90% of their value in bear markets, Ethereum is unlikely to go below 50%. The odds of a significant price collapse for Ethereum are also reduced by the fact that, unlike in the past, Ethereum now has a lot of institutional holders.

Ethereum is a smarter Store of Value

— Gem onchain (@Gemonchain) June 10, 2025

Since such investors have a long-term view of the market, a dump similar to what happens in retail-controlled cryptocurrencies is unlikely. It is identical to what is happening to Bitcoin at the moment. Any dips experienced so far are minor and are quickly bought up. This institutional support for Ethereum could see capital fleeing higher-risk altcoins flow into Ethereum if the market turns full bear. 

Ethereum Core Fundamentals Stronger Than Most Altcoins

Besides the market-related factors that could support Ethereum’s price, Ethereum fundamentals are now better than ever. This is evident because it has the highest TVL of all the top L1s. On top of that, Ethereum’s TVL is rising even as some of its competitors are recording declines. Such validation for Ethereum in an increasingly crowded market could boost investor confidence. Such could see Ethereum hold its value better than the average altcoin, even if there is a correction in the short term.

$ETH TVL reached $65,500,000,000.

Ethereum is significantly outperforming all L1's. pic.twitter.com/ZMt8tM8q7i

— Ted (@TedPillows) June 12, 2025

Technical Analysis – Ethereum Bounces Off Support After Intraday Correction

After a correction for the better part of the day, Ethereum has found strong support at $2730.1. The price has bounced off this support, an indicator that buyers could be looking to take advantage of the dip.

If this buying momentum increases, Ethereum could rebound to around $2816.1 in the short term. Sustained momentum could see Ethereum rally to $2900 in the short term. However, if bearish sentiment strengthens and the $2816.1 support gives way, the $2588.7 support could come into focus in the short term. However, with the rebound happening at $2730.1 support at the moment, a rebound to prices as high as $2900 is more likely.