The Ethereum price was on a tear at the start of this week, breaking above the $2,800 level for the first time since February 2025. However, the escalating tensions between Israel and Iran hurt risk assets, with Bitcoin and Ethereum bearing most of the downward pressure in the crypto market.
The price of Ethereum fell from above $2,800 toward the psychological $2,500 level, reflecting a significant break from the altcoin’s recent bullish progress. However, historical price data shows that the Ethereum price might be just fine so long as it stays above the $2,500 support.
Is A Return To $4,000 Possible For Ethereum Price?
In a recent post on the social media platform X, crypto analyst Rekt Capital explained the current setup of the Ethereum price after its latest decline and the potential implications on its future trajectory. According to the online pundit, the second-largest cryptocurrency has established the $2,500 zone as a significant support cushion.
After a rough first quarter of the year, the price of Ethereum experienced an explosive start to May, rising back above the $2,000 mark. However, the altcoin had struggled to break above $2,800 before this past week, typically settling above the $2,500 support after facing rejection at this resistance level.
According to Rekt Capital, the Ethereum price has shown a strong degree of stability above the $2,500 level over the past five weeks. The crypto analyst noted that if this trend continues, the altcoin’s value could witness a significant surge and return to around the $4,000 region.
Rekt Capital highlighted that holding the $2,500 as support has facilitated extended Ethereum price rallies toward $4,000 in the past. As shown in the chart below, the price of ETH made a strong move to the $4,000 zone in late 2024 after hovering around $2,500 throughout August to October.
The last time the price of Ethereum was at $4,000 was in mid-December 2024, preceding an almost 60% crash in early parts of the year. A return to this cycle peak for ETH could mark the beginning of a fairly anticipated altcoin season.
As of this writing, the price of ETH stands at around $2,577, reflecting an almost 3% decline in the past 24 hours.
Ethereum Dominance Reaches Five-Year High
In a separate post on X, Rekt Capital revealed that the Ethereum Dominance has been climbing over the past few days. The latest data indicate that the altcoin has now achieved 10% market dominance for the first time since 2020, continuing its uptrend.
If this positive trend continues and the altcoin’s market dominance continues to improve, investors could see the Ethereum price go on an impressive upside run. Moreover, this could also mean diminishing Bitcoin dominance and an improved likelihood of seeing an altseason this cycle.
