- Ethereum shows strong recovery signs, rebounding 42% from December lows with analysts eyeing a 54.8% rally toward $4,000.
- Bullish RSI divergence and higher lows suggest ETH could sustain momentum and lead a broader altcoin market resurgence.
- Sustained volume spikes and technical strength point to a possible breakout as Ethereum rebuilds after 2024’s sharp decline.
Ethereum (ETH) appears to be pulling back into recovery after a sharp classic 2024 drop, as seen from the perspective of Javon Marks. Now trading above $2,400, an increase of 42% from the lows of December situated around $1,400, an RSI-positive divergence pointed out by the analyst shows that there might be another leg up from this bounce. Interestingly, the analyst expects an almost 54.8% retracement to $4,000. The hope might regain confidence in the altcoin market should Ethereum break above resistance zones.
Volatility and Momentum Define the Trend
The Ethereum market experienced severe fluctuations in 2024. Beginning the year close to $3,000, the cryptocurrency saw growth by summer. It had a rebound from previous lows, reaching a peak of almost $4,100 in late July. This bullish run, however, abruptly reversed.
Source: Javon Marks
By November, ETH broke through critical support levels and crashed below $1,500 in December. This 40% decline occurred rapidly, intensifying market fear. RSI levels fell under 30 during this period, confirming highly oversold conditions and widespread capitulation.
Signs of a Reversal Emerge in 2025
Despite the bearish pressure, ETH began forming a bullish structure in early 2025. The price has consistently made higher lows since the December bottom. Strong support has developed around $1,500, showing clear accumulation patterns.
Moreover, a curved arrow drawn on recent technical charts points toward a potential bullish breakout. Traders are watching this signal closely. It suggests Ethereum could retest higher levels soon if the momentum continues.
Besides the price recovery, volume spikes have accompanied major market moves. High trading volumes around the July peak and December crash confirm trend strength. Hence, renewed buying pressure could validate the ongoing recovery.
ETH Eyes $4,000 Target
Currently, ETH remains nearly 40% below its July 2024 high. However, a full recovery appears possible if bullish momentum sustains. A break above $2,500 would likely open the door to further gains. Consequently, the bullish divergence remains the key technical driver. If confirmed, it could propel ETH toward the $4,000 mark. Additionally, such a move would positively impact sentiment across altcoins.
