The crypto market outlook flipped from bullish to cautious on February 3, when Bitcoin (BTC) crashed from $102.5K to $91.2K. This sudden collapse pushed Ethereum (ETH) to shed nearly 26% in a single day. Despite a strong recovery on the same day, Ethereum price does not instill confidence among investors and shows signs of revisiting the February 3 lows. However, on-chain metrics and fundamental developments suggest the big-picture outlook is bullish, but technicals hint that more pain might be ahead in the short term. Will Ethereum Price Revisit $2,000? From a technical analysis perspective, Ethereum price produces lower lows and lower highs, eyes a revisit of $2,497, the midpoint of the February 3 wick. Hence, the first key support is $2,500, where investors can expect a bounce and a reversal . The short-term outlook remains bearish until ETH reclaims the January 31 swing high of $3,473 and creates a higher high . Until this happens, investors must assume that the trend is bearish . Assuming Bitcoin does not lose the bullish market structure, the ideal buy zone is between $2,000 and $2,100. The equal lows formed at $2,100 and the bearish outlook indicates that a revisit of $2,000 psychological might not be far behind , especially if the $2,500 support is breached . ETH/USDT 1-day chart Key overhead resistance levels include the previous week’s and month’s VWAPs at $3,119 and $3,306 , respectively. Overcoming these hurdles will allow the Ethereum price to set a higher high above the January 31 swing high of $3,473. Such a development would flip the outlook bullish and trigger a sweep of the equal highs at $4,093 . In such a case, ETH’s value could continue to inflate and revisit the all-time high (ATH) of $4,868 . To conclude, the Ethereum price prediction shows a short-term bearish bias with a target of $2,000. On the contrary, it notes that a flip of $3,473 will flip the bias on its head and trigger a rally to $4,000 or higher. Regardless of which outlook plays out, investors must keep an eye on the buy zone between $2,100 and $2,000 as on-chain metrics flash multiple buy signals Whales Accumulate Close to 1 Million ETH in 2025 The first on-chain metric that screams bullish is the Supply Distribution metric from Santiment, which tracks the wallets based on balance. This indicator shows that wallets holding 1K to 10K ETH accumulated 950,000 ETH since January 1, 2025 . Clearly, whales prefer ETH and see value in accumulating it. While this is a bullish fundamental development, investors need to understand that these holders are willing to wait for years before the asset reaches their take-profit levels. Regardless, this is a bullish development for Ethereum that hints prices could bounce soon. Ethereum Supply Distribution By Balance of Wallets Moreover, Ethereum received an endorsement from Eric Trump, who stated : “In my opinion, it’s a great time to add $ETH .” ETH Holders Capitulate Amid Whale Transaction Activity Spike During the FOMC volatility, many ETH holders capitulated. In the past 3 months, whenever @santimentfeed 's NPL (Net Realized Profit/Loss) indicator saw a negative spike, Ethereum price triggered a recovery rally. Some of these bounces extend as much as 34% while others only 14%.… pic.twitter.com/OZscT4qVxd — MAXPAIN (@Mangyek0) January 30, 2025 Analyst Maxpain noted that the Monday crash had a few caveats, suggesting that ETH price could set the stage for a massive reversal rally. The expert supports this thesis by pointing to the Network Realized Profit/Loss indicator. An uptick in this metric shows that investors are selling their holdings for a profit. Often, a positive uptick after a rally markets tops. On the contrary, a downtick after a massive crash shows investors selling at a loss or capitulation. During the February 1st week, NPL saw capitulation, and history shows that a recovery rally follows when this happens “Some of these bounces extend as much as 34% while others only 14%.” ETH NPL The analyst further explains that “whale transaction count (>$100K), it did not spike as much on Jan 13, but has been spiking a lot since Jan 27, showing whales are interested,” suggesting that there is an active accumulation from whales while short-term holders capitulate. All of this points to a potential bounce. However, as noted above, technical analysis reveals that an uptrend will begin only after the $2,500 hurdle is overcome and ETH sets up a higher high above the January 31 swing high of $3,473. The post If Ethereum Price Revists $2,000, Should You Buy ETH? appeared first on CoinGape .
