Ethereum Defends Key Support as Analysts Eye Potential 2.5x Surge
Highlights
- Crypto analyst Ali Martinez points to a favorable risk-to-reward ratio for Ethereum long positions.
- Despite recent underperformance, analysts hold a bullish outlook on Ethereum, likening it to Amazon in its early days.
- Experts at 21Shares stress the strong talent pool propelling Ethereum’s development, which could lead to groundbreaking applications.
Currently, Ethereum (ETH), the world’s largest altcoin, is defending crucial support levels around $2,400. Over the weekend, the price rebounded above $2,500, with analysts suggesting that ETH has found solid support and could rally as much as 2.5 times to reach $6,000.
Path to a Potential $6,000 Rally
Crypto analyst Ali Martinez has highlighted an appealing risk-to-reward setup for ETH, advocating for a promising long position. Martinez revealed his strategy, setting a stop-loss below $1,880 and aiming for a bold price target of $6,000. He believes that the current price structure presents an opportunity for investors to tap into ETH’s potential upside in the near term.
For ETH to confirm this rally, it must first break through the significant resistance at $2,680. Clearing this downward trendline could shift momentum in favor of the bulls.
Although Ethereum has lagged behind Bitcoin for an extended period, institutional interest remains strong. For instance, Swiss banking giant UBS recently introduced its first Ethereum-based tokenized investment fund in Singapore. Meanwhile, Bitcoin’s dominance has increased to 60.5%, while Ethereum’s market share has dropped to 13%, down from 18% earlier this year.
It remains to be seen whether Ethereum will continue trailing Bitcoin or reverse its trajectory to signal the start of an altseason. Last week, prominent trader Peter Brandt predicted a potential ETH price drop to $1,550.
Comparing Ethereum to Amazon’s Growth
A research analyst at 21Shares has noted that Ethereum’s potential is still largely untapped, drawing comparisons to Amazon in the early 1990s. Leena ElDeeb, a research analyst at 21Shares, stated that Ethereum is “complex, akin to Amazon in the 1990s — offering immense potential with complex use cases.”
Federico Brokate, vice president and head of the US division at 21Shares, pointed out that Amazon began as a modest online bookstore before transforming into a global e-commerce and cloud computing leader. Similarly, Ethereum started in 2015 as a blockchain network for smart contracts but now underpins decentralized finance (DeFi) applications valued at over $140 billion. Brokate explained:
“Just as Amazon expanded beyond books to redefine entire industries, Ethereum may astonish us with future use cases we can’t yet imagine.”
Although Ethereum’s current market cap of $320 billion is only 6.25% of Amazon’s $2 trillion valuation, Brokate pointed to Ethereum’s strong advantage—a deep pool of talent enhancing its ecosystem. “Amazon grew to employ over 1.5 million people worldwide — similar growth could be mirrored in the Ethereum ecosystem,” he added.
Despite recent price struggles, Ethereum could rebound to new highs once it escapes its bearish phase. ElDeeb noted that inflows into spot Ethereum ETFs are likely to rise as ETH gains bullish momentum.
