Ethereum Price Forecast: ETH Could Rally to $3500 If Support Holds

Highlights:

• Ethereum price has been in a correction for the last 24 hours
• The correction has pushed Ethereum to the $3192 support
• A bounce off the $3192 support could trigger a rally to $3500 in the short term

Ethereum (ETH) like the rest of the market is in the red today. At the time of going to press, Ethereum was down by 3.19% to trade at $3197.77. Ethereum trading volumes are also in decline in the day. They have dropped by 19.25% to stand at $21.63 billion. The declining Ethereum trading volumes point to the fact most Ethereum holders are opting to stay on the sidelines.

This means they expect Ethereum to potentially make a big price move for Ethereum price in the short to medium term. Multiple factors make Ethereum an attractive cryptocurrency as investors expect the next parabolic bull cycle to start any time soon.

Lido Founder Proposes a Second Ethereum Foundation

One of the factors that could trigger a bull rally for Ethereum is expected changes at the Ethereum foundation. Recently, Konstantin Lomashuk, the co-founder of Lido, pointed to the possibility of a second Ethereum foundation.

The second foundation, Lomashuk, noted that the new foundation would deal with the criticism that the current foundation has faced so far. This is a big deal, considering that issues with how Ethereum has been run so far are part of the reason it has been lagging the market so far.

👀 https://t.co/o1pgQ8J3mC

— Konstantin Lomashuk cyber/acc (@Lomashuk) January 22, 2025

Among the issues that the Ethereum Foundation has faced so far is its spending practices. They have also faced controversy touching on the prioritization of L2s at the expense of the core Ethereum network. They have also been criticized for ongoing sales of Ethereum. This, critics say, has led to a slowdown in the growth of Ethereum DeFi solutions, key among them being Ethereum staking.

Going Back to Ethereum’s Core Ideals

The excitement around Lomashuk’s idea is the fact that it is in line with what Ethereum was supposed to do in the first place. The idea was a decentralized network that has superior address search, among other technical developments. Despite the excitement that the proposal for a second Ethereum Foundation has created, some analysts are still skeptical about Ethereum’s prospects. That’s especially in the short term when it is facing so much competition from other L1s.

Trump’s Investment Could Boost Ethereum Price

Overall, those bullish around Ethereum are more pronounced. Broader market factors are also increasingly bullish for Ethereum. One such factor is the fact that Donald Trump’s blockchain company recently bought and staked 10k Ethereum. This makes the Trump organization one of the top-stakeholders in the Ethereum market. Considering Trump has influence now that he is president, his move could trigger a parabolic price move for Ethereum.

Ethereum Foundation Pivoting to More DeFi Investments

Ethereum is also likely to get a boost from the fact that the Ethereum Foundation is investing aggressively in DeFi. The latest data indicates that the Ethereum Foundation has set aside 50k Ethereum for DeFi-related activities. This could mean that even before the new foundation changes are enacted, they are already moving away from the Ethereum sales they have been carrying out in the recent past.

Technical Analysis – Ethereum Price Trading at Key Support

From the chart, Ethereum is currently trading at a make-or-break point in the short term. Ethereum is currently trading at the $3191.2 support. If Ethereum loses the $3191.2 support, then a correction to prices below $3000 could follow.

On the other hand, if Ethereum price bounces off the $3191.2 support, then a rally to $3348.5 resistance in the short term. A rally through the $3348.5 resistance could see Ethereum rally to $3500 in the short term.