Ethereum Price Analysis & Key Levels: Why Are Investors Anxious?

The gap between Bitcoin (BTC) and Ethereum (ETH) price movements has been widening in recent months, with the rise of digital assets and Web3 protocols shifting market dynamics. What was once a predictable pattern of Bitcoin’s bull runs triggering altcoin seasons is now a more complex story. New altcoins are flooding the market, diluting liquidity and changing the game for Ethereum.

Ethereum’s role in the next altcoin season is still up for debate.

What’s behind this evolving trend, and what does it mean for investors? Let’s dive in.

Spot ETFs Market Impact

The approval of spot Bitcoin and Ethereum ETFs in the U.S. last year has added complexity to the market. Unlike previous bull markets, the ETFs have made it harder for liquidity to flow between assets as easily. As a result, Ethereum is expected to lead the next altcoin season, driven by fresh investments in projects with stronger fundamentals and real-world applications.

Ether Supply Increases

Since the start of 2025, the amount of Ether on centralized exchanges has increased from 15.39 million to around 16.04 million, which has contributed to a bearish sentiment. The rise in Ether supply on these exchanges continues to pressure its price and overall market sentiment.

In addition to the growing supply, cash inflows into U.S. spot Ether ETFs have been shrinking. Since the beginning of this week, these ETFs have seen a net outflow of about $141 million, indicating less investor interest in Ether at the moment.

Glassnode’s on-chain analysis reveals that long-term Ether investors are beginning to feel anxious. After months of denial and disbelief, they are now facing growing concerns about Ether’s near-term prospects.

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Ethereum Short-Term Outlook

As Bitcoin dominance continues to gain more ground against the majority of the altcoins, crypto analyst Benjamin Cowen has predicted a major downturn for Ether before a bullish recovery in the near future. Moreover, Cowen noted that the Federal Reserve did not kick start its Quantitative Easing (QE) program akin to the Canadian counterpart.

Key Support Levels: What to Watch

From a technical standpoint, crypto analyst Ali Martinez has pointed out that the critical support zone for Ether is between $2,230 and $2,610. This range is supported by nearly 12 million wallets holding over 62 million ETH, which could help stabilize its price if Ethereum faces a downturn.

As the market fluctuates, Ethereum’s resilience will be tested in ways it has never been before.

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