Ethereum’s price has rebounded above $3,600, surpassing its active realized price of around $3,545, allowing most holders to return to profitability and fueling bullish sentiment for a potential rally toward $4,000 amid improving market conditions.
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Ethereum price rebound signals profitability for holders as it trades above key cost basis levels.
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The surge of about 20% from November lows has reduced sell pressure and boosted investor confidence.
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On-chain data shows over 4.2 million ETH held between $3,600 and $3,815, forming a resistance zone near $3,800 with historical rallies following such reclamations.
Ethereum price rebound above $3,600 restores profitability for holders, eyeing $4,000 amid bullish signals. Discover key resistance levels and expert insights to stay ahead in the crypto market today.
What Does Ethereum’s Price Rebound Above Cost Basis Mean for Investors?
Ethereum price rebound has pushed ETH above its active realized price of approximately $3,545, meaning the majority of holders are now in profit rather than facing unrealized losses. This shift, following a 20% surge from November lows around $3,050, indicates reduced selling pressure and renewed optimism. Historically, such reclamations have preceded significant rallies, like the 89% climb to $4,100 from $2,165 in prior cycles.
How Are Support and Resistance Levels Shaping Ethereum’s Next Move?
Maintaining support above $3,500 is crucial for Ethereum’s continued upward trajectory, with key levels at $2,870, $2,530, and $1,800 providing downside protection based on deviation pricing bands. On the upside, the $3,800 to $3,900 zone presents strong resistance due to clustered cost bases where approximately 4.2 million ETH were acquired between $3,600 and $3,815. Breaking through $3,700 could target liquidity pools near $4,000 to $4,100, as noted by market analyst Ted Pillows, who emphasized that reclaiming this threshold is essential to avoid declines and unlock higher milestones.
Expert Michael van de Poppe has highlighted the $3,800-$3,900 range as a pivotal barrier for achieving new all-time highs, while trader Jelle stresses the urgency of surpassing $4,000 to sustain momentum. On-chain metrics from sources like Cointelegraph Markets Pro and TradingView underscore this recovery’s foundation, driven by broader market uplift from political promises such as tariff dividend payments and easing U.S. government tensions. Institutional accumulation, exemplified by BitMine’s addition of over 110,000 ETH last week toward a 5% supply goal, further bolsters confidence in Ethereum’s network resilience amid DeFi expansion and regulatory dialogues.
This combination of technical levels and growing institutional interest suggests Ethereum could test recent highs if bulls hold firm, though volatility remains a factor in the cryptocurrency landscape.
Frequently Asked Questions
What Triggers a Bullish Ethereum Price Rebound Like the Current One?
The recent Ethereum price rebound was sparked by a 20% rise from $3,050 lows in November, crossing the $3,545 active realized price and alleviating holder losses. Positive political developments, including promises of economic relief measures, enhanced overall market sentiment, reducing sell-offs and paving the way for profitability-driven confidence among investors.
Can Ethereum Sustain Its Rally Past $3,800 Resistance in 2025?
Ethereum’s ability to sustain a rally past $3,800 depends on flipping this resistance into support, as clusters of 4.2 million ETH held nearby could spur profit-taking. Analysts like Michael van de Poppe indicate that breaking $3,900 unlocks potential for $4,000 and beyond, supported by institutional buys and on-chain improvements for a resilient push forward.
Key Takeaways
- Ethereum Above Cost Basis: Trading over $3,545 means most holders are profitable, historically leading to rallies like the prior 89% gain.
- Critical Resistance Ahead: The $3,800 zone, backed by 4.2 million ETH positions, tests bulls’ strength before $4,000 targets.
- Institutional Boost: Firms like BitMine adding 110,000 ETH signal confidence, urging investors to monitor support at $3,500 for sustained growth.
Conclusion
Ethereum’s price rebound above key cost basis levels has restored profitability for the majority of holders, with bullish sentiment building around potential breakthroughs past $3,800 resistance and toward $4,000. Supported by on-chain data, expert analyses from figures like Ted Pillows and Michael van de Poppe, and rising institutional interest, this momentum highlights Ethereum’s enduring appeal in the volatile crypto space. As market dynamics evolve, staying informed on support zones and regulatory progress will be essential for investors aiming to capitalize on the next phase of growth.
