Why The Ethereum Price Could Bounce Above $3,500 Soon

Overview

A crypto analyst has provided insights into the potential for Ethereum’s price to rise to $3,500 in the near future. This comes as the cryptocurrency has faced bearish pressure throughout much of 2025, trading significantly below its all-time highs. The analyst has pointed to various technical indicators and market structures that suggest a possible rebound for Ethereum.

Ethereum’s Current Price Dynamics

According to the analysis, Ethereum is currently trading over 37.5% below its all-time highs. The analyst, Tryrex, has indicated that Ethereum may be nearing the conclusion of its extended corrective phase, which could set the stage for a significant price increase. He noted that Ethereum is holding a critical liquidity zone between $2,800 and $3,000, which has historically acted as a demand zone that has absorbed selling pressure.

Tryrex’s observations stem from Ethereum’s ability to maintain its position in this liquidity region, suggesting that market participants are actively buying rather than selling. The volume behavior observed at the bottom of the TradingView chart implies a weakening of selling pressure in comparison to earlier periods of Ethereum’s downtrend. This shift in dynamics could potentially lead to an impulsive move upward, especially as Ethereum continues to respond to the established liquidity range.

If momentum builds as expected, Ethereum could break free from its current market structure, pushing toward higher resistance levels. The analyst has indicated that a move above $3,500 could become a realistic target in the near term.

Market Sentiment and Broader Implications

The outlook for Ethereum is not only based on its own technical indicators but also reflects broader conditions across the altcoin market. The analyst highlighted that many significant altcoins are showing signs of bottoming out after prolonged downtrends. This creates an environment where coordinated upside movements may occur if market sentiment and volatility improve.

As 2026 begins, Ethereum has started to show signs of recovery. After initially entering the year in a downtrend, Ethereum’s price has seen a slight increase of approximately 2.5% over the past 24 hours. Despite a decline of more than 9.5% since January 1, trading volume has surged by over 100%, indicating strong interest from traders. Additionally, whale investors have been accumulating Ethereum, taking advantage of the lower prices to bolster their positions.

From Author

The analysis provided by Tryrex highlights the critical importance of liquidity zones in understanding market dynamics. The observed behavior of market participants in these zones can offer insights into future price movements. As Ethereum navigates its current market conditions, the interplay between buying and selling pressure will be crucial in determining its trajectory.

Impact on the Crypto Market

• Ethereum’s potential rise to $3,500 could signal a shift in market sentiment, influencing other cryptocurrencies.
• Increased trading volume and whale accumulation may indicate a growing confidence in Ethereum’s recovery.
• A successful rebound for Ethereum could lead to coordinated price movements among other altcoins, revitalizing the broader crypto market.
• The current liquidity zone’s defense by Ethereum suggests that market participants are positioning themselves for potential gains, which could attract more traders.
• The overall market dynamics may shift if Ethereum breaks through key resistance levels, prompting further interest from investors.