Ethereum (ETH) price prediction: Technical indicators suggest a rebound, with a potential target of $6250.

The price of Ethereum (ETH) has retreated in the past few days, falling from a year-to-date high of $4,945 to around $4,335 currently, but is still about 210% higher than this year's low. Technical analysis shows that the price is in an important 'breakout-retest' pattern, indicating a potential rebound. Meanwhile, the continuous influx of funds into the spot ETH ETF, along with Ethereum's strong fundamentals in the DeFi and stablecoin space, provide solid upward momentum.

Technical Analysis: Ethereum Price Indicates Rebound

(Source: TradingView)

From the weekly chart, the ETH price bottomed out at $1,385 in April, and then rebounded to a historical high of $4,945 in August. Recently, the price has broken through the key resistance level of $4,100 from March and December of last year.

In most cases, asset prices tend to form a "breakout-retest" pattern after breaking through important resistance levels, meaning the price pulls back and retests that level, turning it into new support. Currently, ETH appears to be attempting to retest the support level of $4,100, and if successful, this will lay the foundation for a new round of strong bullish breakout.

If this pattern is confirmed, the initial target for ETH will be its historical high of $4,946, followed by the important psychological level of $5,000. Once this level is broken, the price may rise further, with a potential target at the extreme overshoot level of the Murrey math line at $6,250, which is about 45% higher than the current price. However, if ETH falls below the strong pivot reversal level of $3,750, the bullish forecast will be invalidated.

Bullish fundamentals inject new momentum into Ethereum

In addition to technical signals, the fundamentals of Ethereum are also very strong, which will help it rebound in the short term.

Among them, the most striking is Ethereum's dominance in the Decentralized Finance (DeFi) sector. Its Total Value Locked (TVL) has soared to over $91 billion, far exceeding other public chains.

In addition, Ethereum's share in the stablecoin market continues to grow. The supply of stablecoins on the network has risen to $157 billion, bringing more trading activity to the network. According to Glassnode data, recent trading volume has increased by 14%, and the adjusted trading amount has surged by 38%. This data is likely to continue rising, bringing more income to the network.

Despite a recent pullback, the performance of Ethereum spot ETFs remains strong. Data shows that its cumulative net inflow has exceeded $12 billion, with BlackRock's ETHA ETF assets under management (AUM) surpassing $16 billion. The derivatives market also shows strong demand, with futures open interest climbing above $58 billion, and the funding rate remains positive, indicating that overall market sentiment is bullish.

Conclusion

The current market performance of Ethereum is the result of the combined effects of technical charts and fundamental strength. The price pullback is not the end of the bullish trend, but a healthy retracement to key support levels. From the prosperity of on-chain data to the continuous inflow of institutional funds, Ethereum is building a solid foundation that provides assurance for its push towards higher price levels. As long as ETH can successfully hold the support level at $4,100 and regain momentum, the prospect of returning to or even surpassing historical highs will be very clear.