Ethereum Prepares for 30% Price Rally After Reaching ‘Ultimate Buy Zone’

Ethereum’s native token, Ether (ETH), has rebounded 9.25% after reaching $2,920, marking its lowest level since November 2024. The price recovery aligns with an accumulation zone identified by analysts, signaling a potential move toward a new all-time high (ATH).

Let’s examine the factors influencing ETH’s upside outlook.

Ethereum’s ‘Ultimate Buy Zone’ and Accumulation Potential in Coming Weeks

ETH’s dip into the $2,920–$2,800 range has coincided with increased buying activity, according to crypto analyst CrediBULL Crypto.

Labeling the area as an “ultimate buy zone,” the analyst observed that ETH had spent nearly ten months consolidating within a broader $2,800–$4,000 range. This prolonged accumulation, he argued, sets the stage for a bullish breakout, similar to Bitcoin’s recent price action.

Historically, rebounds from this support range have pushed ETH toward the $4,000 level, suggesting the potential for a 30% rally from its current price. If ETH manages to breach $4,000, it may continue its ascent toward its prior ATH of $4,879.

ETH Funding Rates Recovery Signals Bullish Reversal

Data from CryptoQuant highlights a notable recovery in Ethereum’s funding rates, a metric reflecting the cost of holding long or short positions in the perpetual futures market.

During ETH’s recent dip, funding rates turned negative, indicating heightened bearish sentiment and expectations of further price declines. However, the recovery in funding rates near the $3,000 support level suggests renewed buying interest.

If this trend persists, it could reinforce ETH’s price rebound as traders increasingly open long positions in anticipation of a broader recovery.

On the contrary, a reversal in funding rate momentum may signal renewed bearish pressure, potentially driving ETH below $2,800.

Trump Tariffs Renews Risk-On Rally

Today’s Ethereum rebound followed reports that President-elect Donald Trump’s economic team is considering a gradual approach to implementing tariffs. This potential shift has relieved markets, which had been bracing for steep levies of up to 60% on Chinese goods.

Global stocks rebounded alongside Ethereum, signaling a renewed risk-on sentiment. Meanwhile, the dollar index declined for the first time in six sessions,

The prospect of phased tariff implementation has boosted market optimism, as it may help ease inflationary pressures and lower Treasury yields.

Such a scenario could give the Federal Reserve greater flexibility to reduce interest rates. Investors are also closely monitoring US inflation data due this week, which could provide additional insights into the Fed’s policy trajectory.

Key Ethereum Price Levels to Watch

As ETH trades near the $3,200 level, its next significant resistance lies around $3,400, coinciding with its 50-day exponential moving average (EMA). A breakout above this level could pave the way for a retest of the $4,000 resistance, up 30% from the current prices.

On the downside, a failure to sustain momentum above the $3,000 support could lead to a revisit of the $2,800–$2,400 accumulation range.