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Crypto analyst Ali Martinez discussed Ethereum’s current price action as the second-largest crypto by market cap remains below $4,000. The analyst presented some facts to give a clearer idea of whether or not it is the right time to abandon ETH.
Analyst Questions Whether It’s Time to Ditch Ethereum
In a MessageAli Martinez laid out some facts to determine whether it is time to abandon Ethereum. First, the analyst noted that ETH has been one of the worst performers of late, a development that appears to have prompted Vitalik Buterin shake things up by changing the leadership team of the Ethereum Foundation.
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Martinez then alluded to historical data showing that Ethereum performs well in the first quarter of every year. The analyst previously suggested that this year would likely be no different. At the time, he pointed out that ETH saw its best performances in the first quarter, especially in odd years, and that 2025 was one of them.
Given Ethereum’s positive performance in the first quarter, Martinez noted that this could explain why crypto-whales have accumulated over $1 billion worth of ETH in the last week alone. He previously revealed that these whales purchased over 330,000 ETH, valued at over $1 billion.
Furthermore, the crypto analyst noted that buying pressure is also evident in the foreign exchange outflowswith nearly $2 billion worth of Ethereum withdrawn from crypto platforms in the past month. Specifically, 540,000 ETH, worth $1.84 billion, was withdrawn from exchanges over the past month. This accumulation trend is positive because it indicates that investors are still bullish on ETH.
However, for Ethereum to break out bullishly, Martinez mentioned that it must overcome several key resistance levels. From an on-chain perspective, the crypto analyst highlighted the $3,360 to $3,450 area as great supply wall. This range forms the most critical resistance level for ETH, while the key support zone lies between $3,066 and $3,160.
From a technical analysis perspective
Martinez also provided insight into Ethereum price action from a technical analysis perspective. He stated that ETH appears to form the right shoulder of a head and shoulders patternwith a $4,000 neckline. He added that a decisive break above this level could fuel a rally towards $7,000.
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The crypto analyst also revealed that this upward target corresponds to Ethereum 3.2. Market value to realized value (MVRV) Pricing Band, which currently hovers around $7,000. Amid this bullish outlook, Martinez mentioned that one worrying sign is Ethereum’s network growth, which has slowed. The number of new ETH addresses reportedly decreased by 9.32%, indicating reduced adoption.
Despite this, Martinez believes that the outlook for Ethereum remains optimistic. He asked market participants to keep an eye on the $2,700-$3,000 support zone. According to him, this demand zone must persist to maintain the bullish outlook for ETH.
At the time of writing, Ethereum is trading at around $3,200, down 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image of Adobe Stock, chart from Tradingview.com
