The Ethereum Market Shows Overheated Signs Near $2,500: Is a Pullback Coming?

As Ethereum continues to fluctuate around the $2,500 mark, signs indicate that the market is starting to exhaust. Analysts suggest that the second largest cryptocurrency by market capitalization may face a short-term pullback before attempting to break through higher resistance levels. Ethereum is showing signs of overheating. According to the CryptoQuant Quicktake post by contributor ShayanMarkets, ETH is starting to show signs of an overheated bullish phase. The analyst shared the following chart illustrating the total trading volume of ETH across various cryptocurrency exchanges.

In this chart, the size of each bubble reflects the scale of trading volume, while the color indicates the rate of change in volume, categorized into four groups – Cooling, Neutral, Overheating, and Overheated. The continuous price increase of Ethereum, which began in mid-April 2025, has seen a significant rise in trading activity. In just one month, the market condition of the asset has shifted from Cooling (green bubble) to Overheated (red bubble). The current overheating situation may lead to a short term adjustment as the market cools down and enters another accumulation phase. However, the depth and duration of any potential pullback remain uncertain. CryptoQuant contributors believe that the sudden spike in volume is due to profit-taking and a significant supply resting at the important psychological resistance level of $2,500. Data from CoinGecko shows that ETH has impressively surged 59.7% over the past 30 days, outperforming Bitcoin (BTC) in the same period. ShayanMarkets concludes: Therefore, Ethereum is expected to continue the consolidation phase until new demand emerges to drive a breakout above this resistance level in the short term. In a private post on X, veteran cryptocurrency analyst Ali Martinez pointed out the extreme price bands of the market capitalization versus the actual value (MVRV) of Ethereum. He emphasized that ETH must stay above $2,200 to maintain its upward momentum. If this level is sustained, Martinez believes that ETH could target $3,000, or even potentially $4,000, if buying pressure increases significantly.

Where is ETH headed? Analysts weigh in The impressive performance of Ethereum recently has attracted the attention of some cryptocurrency analysts, who are currently speculating about the future price trajectory of this digital asset. According to cryptocurrency analyst Ted Pillows, the 12-hour chart of ETH has recently confirmed a Golden Cross, a bullish signal that often occurs before major price increases. In another analysis, Pillows predicts that ETH could head towards the $4,000 resistance level, noting that the asset has been trading in a large symmetrical triangle since Q3 2020. The $4,000 level is right below the upper boundary of the triangle.

Conversely, cryptocurrency analyst Gianni Pichichero has warned of a potential pullback to the 2,350 dollar level, citing the appearance of lower lows on Ethereum's daily chart as a bearish signal. At the time of the press report, ETH was trading at 2,500 dollars, up 3.6% over the past 24 hours.

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