Cryptocurrency analyst Ali Martinez discussed Ethereum’s current price action as the second-largest cryptocurrency by market capitalization, which remains below $4,000. The analyst provided some facts to give a clearer picture of whether this is the right time to divest from ETH.

An analyst discusses whether it’s time to abandon Ethereum

In Post XAli Martinez outlined some facts to determine if it’s time to give up on Ethereum. First, the analyst noted that ETH has been one of the weakest performers lately, which seems to be the reason for this development Vitalik Buterin shake things up by changing the Ethereum Foundation’s leadership team.

Martinez then alluded to this historical data showing that Ethereum performs well in the first quarter of every year. The analyst has already suggested that this year will probably be no different. He then noted that ETH performs best in the first quarter, especially in odd-numbered years, and 2025 is one such year.

Given Ethereum’s positive first-quarter performance, Martinez noted that this may explain why crypto whales Just last week, they raised over $1 billion worth of ETH. He previously revealed that these whales purchased over 330,000 ETH worth over $1 billion.

Moreover, the cryptocurrency analyst noted that buying pressure is also perceptible in exchange outflowsand over the past month, nearly $2 billion in Ethereum has been withdrawn from cryptocurrency platforms. Specifically, 540,000 ETH worth $1.84 billion was withdrawn from exchanges over the last month. This accumulation trend is positive because it indicates that investors remain bullish about ETH.

However, for Ethereum to break higher, Martinez mentioned that it needs to overcome several key resistance levels. From an on-chain perspective, the cryptocurrency analyst highlighted the $3,360 to $3,450 zone as main supply wall. This range is the most critical resistance level for ETH, while the key support zone is located between $3,066 and $3,160.

From a technical analysis perspective

Martinez also provided insight into Ethereum’s price action from a technical analysis perspective. He stated that ETH appears to form the right arm of a head and shoulders patternwith a neckline worth $4,000. He added that a decisive break above this level could fuel a rally towards $7,000.

The cryptocurrency analyst also revealed that this upside target is compatible with Ethereum 3.2 Market value to realized value (MVRV) Price band that is currently hovering around $7,000. Amid this bullish outlook, Martinez mentioned that a worrying sign is that the growth of the Ethereum network has slowed. The number of fresh ETH addresses is said to have decreased by 9.32%, indicating reduced usage.

Despite this, Martinez believes that Ethereum’s prospects are still bullish. He told market participants to keep an eye out for the $2,700 to $3,000 support zone. According to him, this demand zone must persist to maintain ETH’s bullish outlook.

According to Ethereum data, it is trading around $3,200 at the time of writing, down 4% in the last 24 hours. data from CoinMarketCap.

Featured image from Adobe Stock, chart from Tradingview.com