TLDR
- Ethereum is holding steady around $1,800 after a 45% decline in Q1 2025
- Technical indicators suggest ETH is currently undervalued with a potential target of $2,100
- Institutional interest is surging with record ETH ETF inflows of $151.7 million in the week ending April 25
- On-chain metrics show Ethereum entering an ‘undervalued’ zone with signs of capitulation
- The Ethereum Foundation recently reshuffled leadership with two new co-executive directors
Ethereum has been showing signs of strength recently, maintaining its position around the $1,800 level despite a difficult first quarter. After dropping 45% in Q1 2025 from its January high of $3,579, the second-largest cryptocurrency appears poised for a potential breakout according to various technical indicators and on-chain data.
The price started a downside correction from the $1,850 level but found support near $1,780. ETH is now trading above this level and the 100-hourly Simple Moving Average, suggesting bulls remain active in the market.
Technical analysis shows a short-term contracting triangle forming with resistance at $1,810 on the hourly chart. The first major resistance sits near $1,850, with a clear move above this level potentially sending the price toward $1,920 or even $2,000 in the near term.
On the four-hour chart, Ethereum’s recent price behavior has created a bull flag formation. A close above the upper limit of the flag at $1,800 suggests the beginning of an upward surge with a target of approximately $2,100—representing a potential 15% gain from current levels.
Ethereum (yes Ethereum) looking bullish here…
A confirmed breakout of the bull flag could send $ETH to $2100 🚀 pic.twitter.com/n8FPpfRxSH
— Trader Edge (@Pro_Trader_Edge) April 29, 2025
Institutional Interest Drives Momentum
One of the most compelling bullish signals for Ethereum is the surge in institutional demand. Spot Ethereum exchange-traded funds (ETFs) recorded net inflows of $151.7 million in the week ending April 25—the largest since February 2025—followed by additional inflows of $64.1 million on April 28.
This institutional interest ended an eight-week streak of withdrawals, with Ethereum investment products seeing net inflows of $183 million last week. James Butterfill, Head of Research at Coin Shares, linked this trend to broader economic concerns.
“We believe concerns over the tariff impact on corporate earnings and the dramatic weakening of the US dollar are why investors have turned toward digital assets, which are being seen as an emerging safe haven,” Butterfill noted.
The demand for Ethereum ETFs mirrors BlackRock’s record-breaking IBIT Bitcoin ETF performance, which reached an all-time high single-day flow of $970.1 million on Monday.
On-Chain Metrics Show Strength
Several on-chain indicators for Ethereum are flashing positive signals. The MVRV Z-Score, which measures market value to realized value, dropped to -0.18 in March, entering what Fidelity called the “undervalued” zone. Such levels have historically marked market bottoms.
The Net Unrealized Profit/Loss (NUPL) ratio dropped to 0, signifying “capitulation” where unrealized profits equal losses. This is often a neutral point for holders before a trend reversal.
With a realized price average of $2,020, Ethereum currently sits 10% above its present worth, suggesting long-term holders have remained strong despite the market downturn. There was only a 3% reduction in realized price against a 45% price drop, indicating short-term holders were the main sellers.
Ethereum maintains its position as the most frequently used layer-1 blockchain with over $51.8 billion in total value locked (TVL). This TVL has increased by approximately 16% over the past seven days, with protocols like Aave, Lido, EigenLayer, and Ether.fi showing gains between 12% and 13.5%.
Distributed exchanges (DEXs) saw weekly trade volumes climb from $9.7 billion to $12 billion, while the network’s stablecoin balance has been continuously rising throughout the year, moving from $111 billion to $124 billion despite the market downturn.
The Ethereum Foundation recently announced organizational changes, confirming Hsiao-Wei Wang and Tomasz Stańczak as two new co-executive directors starting April 28. The foundation will focus on scaling the Ethereum layer 1, blobs at the layer 2 level, and enhancing user experience over the next 12 months.
If current momentum continues, analysts see Ethereum testing several resistance levels on its journey higher with short-term targets of $2,101, medium-term goals of $2,300, $2,500, and $2,800, and long-term targets of $3,000, $4,000, and possibly $4,400.
However, maintaining this positive momentum depends on holding the $1,800 level, with a clear break above $2,000 needed to validate the bullish outlook and potentially open the path for Ethereum’s advance toward higher targets in the coming months.
