Ethereum price remained rooted below the $2,000 mark on Thursday as uncertainty around the Pectra network upgrade overshadowed gains from positive US CPI Inflation data. With bull traders clustering long positions, ETH looks set to stabilize above the $2,000 level. Ethereum (ETH) Pinned Below $2,000 Despite Market-wide Recovery Rallies Ethereum (ETH) was among the underwhelming performers as the crypto market entered a recovery phase over the last 48 hours. While Bitcoin climbed 4% to reclaim territory above $84,400 and XRP surged back above $2, ETH price failed to gain upward momentum. Since the Pectra upgrade on March 5 and a leadership shuffle at the Ethereum Foundation, the network has continued to face questions about long-term sustainability and unfinished projects. This overshadowed gains from the cooler-than-expected inflation data published in the US CPI report released on Wednesday. Ethereum (ETH) Price Analysis While top altcoins like Chainlink, Hedera, and SUI all raced into double-digit gains at the onset of the rally on Wednesday, ETH price failed to advance above $2,000. The chart above shows ETH trading at $1,887 at press time on Thursday, down 4% despite the dominant bullish sentiment within the broader market. US Reps Vote to end Crypto tax from IRS The US House of Representatives has passed a bill to repeal an IRS rule requiring decentralized finance (DeFi) brokers to report user transactions similar to traditional securities brokers. The rule, implemented under the Biden administration, aimed to enhance tax compliance but faced opposition from lawmakers concerned about its impact on crypto innovation and the risk of companies relocating overseas. Led by Rep. Mike Carey and Sen. Ted Cruz, secured approval in the House after earlier gaining traction in the Senate. Supporters argue that rolling back the reporting requirement will create a more favorable regulatory environment for the cryptocurrency sector. The bill now moves to President Donald Trump’s desk for final approval. If approved, this move could be bullish for ETH price as it could increase the appeal of various DeFi services built on the Ethereum network. ETH Traders Form Major Support Cluster at $1,825, with Bears Risking Short-Squeeze ETH price has languished below $2,000, lagging behind the market rally for two consecutive days. However, recent swings in derivatives market positions suggest ETH traders are bracing for a decisive bullish reversal following the recent development surround elimination of taxes on crypto Validating this outlook, Coinglass ‘ Liquidation Map tracks the total value of active leverage deployed on short and long contracts, showing real-time swings in trader sentiment around key events. Ethereum Liquidation Map | Source: Coinglass As seen above, bulls deployed $753 million in leverage on ETH long positions at press time on Thursday, narrowly exceeding the $744 million leveraged on active short positions. Tl. With bullish traders making aggressive long positions on ETH in the derivatives markets, it reflects a broad consensus among short-term traders expecting Ethereum price to witness considerable upside in the days ahead. While ETH price has plunged 3% in the last 48 hours, long leverage exceeding shorts after a considerably long bearish period is often an early signal of an imminent bullish reversal. ETH Price Forecast; $2,500 rebound hopes alive if $1,825 support holds Ethereum price forecast signals remain on shaky ground after failing to reclaim $2,000, with the daily chart revealing a persistent downtrend. The 5-day, 8-day, and 13-day Super SMAs continue sloping downward, reinforcing bearish control as Ethereum trades near $1,881. The long red candlestick marked by the March 1 reversal signaled a critical breakdown, coinciding with an increase in selling volume. Since then, ETH has been unable to reclaim lost ground, slipping further below short-term moving averages. ETH Price Forecast The Bull-Bear Power (BBP) indicator at -393.47 highlights extreme selling pressure, confirming a sustained bearish trend. However, a potential bottoming-out scenario emerges if the $1,825 support level holds, as this zone represents the last major accumulation area before the March rally attempt. A rebound from this level could trigger a relief rally toward the $2,018 and $2,111 resistance areas, where previous price consolidations took place. On the downside, continued rejection below the short-term moving averages would embolden sellers, increasing the risk of a liquidity sweep toward $1,750. Meanwhile, rising long leverage, as indicated by derivative market positioning, suggests that traders are positioning for a bullish reversal. If leveraged longs outpace shorts, Ethereum could witness short-covering momentum, accelerating a recovery above $2,000 and keeping hopes of a $2,500 rebound alive. The post Ethereum Price Forecast: ETH Traders Must Hold $1,825 support as US Reps vote to cancel IRS Crypto tax appeared first on CoinGape .
