The Ethereum market experienced a dynamic shift in recent days, with its price initially breaking past the $2,800 milestone, a significant achievement since early 2025. Nonetheless, geopolitical dynamics, particularly tensions in the Middle East, have cast a shadow over risky assets, leading both Bitcoin and Ethereum to face downward pressures.
As the Ethereum price retracted from its highs, it dipped toward the critical psychological barrier of $2,500, indicating a substantial correction following its prior bullish momentum. Surprisingly, historical trends suggest that as long as Ethereum remains anchored above this $2,500 support level, this dip could be part of a healthy market correction.
Can Ethereum Reach $4,000 Again?
Renowned cryptocurrency analyst Rekt Capital recently shared insights on social media platform X, discussing Ethereum’s current positioning and its potential path forward. His analysis points to the $2,500 mark acting as a robust support base for the second-largest cryptocurrency.
After a challenging start to the year, Ethereum experienced a resurgence in May, surpassing the $2,000 threshold. However, breaking through the $2,800 resistance proved difficult, with the altcoin typically consolidating above the support level of $2,500.
According to Rekt Capital, Ethereum has shown remarkable resilience above the $2,500 threshold over the last month. Should this trend persist, the cryptocurrency could see a significant upswing, possibly climbing back toward the $4,000 territory.
Historically, maintaining the $2,500 level has paved the way for substantial price surges. Previous data reveals that Ethereum made a notable ascent to approximately $4,000 in late 2024 after maintaining stability around $2,500 for several months.
The last notable peak for Ethereum occurred in mid-December 2024, preceding a significant price correction. A resurgence to this previous high could signify the onset of a much-anticipated altcoin season for investors.
Currently, Ethereum’s price hovers around $2,577, reflecting a slight decrease of nearly 3% over the last 24 hours, marking a moment of reflection for both traders and investors.
Ethereum Dominance Hits a Five-Year Peak
In another update, Rekt Capital indicated on X that Ethereum’s market dominance has seen a notable increase recently. As of the latest figures, Ethereum has reached a 10% market share for the first time since 2020, signaling a steady upward trend.
If this momentum continues and Ethereum’s market dominance keeps rising, investors could witness a significant upward trajectory in Ethereum’s price. Additionally, this could suggest a potential decline in Bitcoin’s dominance, setting the stage for a possible altseason in the near future.
