Ethereum Price To $2,000 Or $6,000? Analyst Examines Ether's Future Trajectory

The Ethereum price performance was quite disappointing in the final weeks of 2024, struggling beneath the $3,500 level. This end-of-the-year blues somewhat flowed into the altcoin’s action in the first month of 2025, as it failed to build any serious momentum in the first 30 days of the year.

Unsurprisingly, this sluggish price action has led to the panic of several Ethereum investors, with a portion of the market pondering if to sell their tokens. A popular crypto analyst on the social media platform X has come forward with an in-depth analysis of the ETH price over the next few months.

What Does The Future Hold For ETH Price?

In a Jan. 31 post on X, crypto pundit Ali Martinez tried to answer the “Is it time to sell Ethereum and move on?” question while breaking down its recent price action and on-chain movement. According to the analyst, the future looks somewhat bleak for the price of ETH, as it stands at the risk of a deep correction in the short term.

This is based on the MVRV Ratio (160-day moving average), which tracks the ratio between a coin’s market cap and the realized cap. It helps to evaluate whether a cryptocurrency (Ethereum, in this scenario) is overvalued. According to Martinez, the ETH price recently fell beneath the MVRV (160D-MA), an occurrence that led to a 40% correction the last time.

Source: Ali_charts/X

The potential of a severe price pullback has resulted in a shift in investor sentiment, with a particular investor cohort showing some level of anxiety in the market. Data from Glassnode shows that long-term Ethereum holders are beginning to sell off some of their coins, strengthening the odds of a price correction.

In the case of a correction, certain on-chain price levels could be crucial to the long-term health of the ETH price. One such price region is between $2,230 and $2,610 (where nearly 12 million wallets bought 62.27 million ETH), which could act as a major support zone against further decline.

From a technical price analysis standpoint, the ETH price appears to be forming an inverse head-and-shoulders pattern, with a major support level between $2,800 and $3,000. According to Martinez, the Ethereum price could make a play for the pattern’s neckline at $4,000 if this support region holds.

Ethereum price

Source: Ali_charts/X

While the $4,000 level has acted as a major resistance level for four years, recent whale accumulation increases the Ethereum price’s chances of breaking this crucial region. The latest on-chain data shows that whales bought over 100,000 ETH (worth over $340 million) in the past few days.

Martinez noted that if the Ethereum price successfully breaks above the $4,000 mark, it could travel as high as $6,770 based on the MVRV pricing bands. This would represent an over 100% rally from the current price point.