ETH Reclaims Momentum After Hitting Critical Support Levels
After weeks of underperformance and fading market dominance, Ethereum (ETH) has staged a dramatic comeback. On April 23, ETH surged nearly 15%, breaking past the $1,800 mark and significantly outpacing Bitcoin and the broader crypto market.
Bitcoin (BTC) recorded a 6% gain on the day, while the total crypto market cap rose by nearly 5% to reclaim the $3 trillion level, according to CoinGecko.
ETH’s latest rally marks a 30% recovery from its April 9 low of $1,400, where it had been trading at bear market levels and hitting its lowest market dominance since 2019.
“You can hate Ethereum all you want, but when it has a big day, the entire crypto ecosystem goes up,” commented pseudonymous analyst Income Sharks to their 640,000 followers on X.
You can hate Ethereum all you want but when it has a big day the entire crypto ecosystem goes up.
— IncomeSharks (@IncomeSharks) April 22, 2025
Market Analysts Divided Over ETH’s Breakout
Market sentiment appears mixed on whether the bounce signals a sustained shift or is merely a byproduct of broader market momentum.
“ETH was largely tracking the price of Bitcoin and the overall market,” said Jeff Mei, COO at exchange BTSE, adding that the confirmation of Paul Atkins as SEC Chair likely gave the entire market a psychological boost.
Meanwhile, analyst Ash Crypto predicted ETH was “about to explode,” drawing parallels to Bitcoin’s late-2024 chart patterns that preceded its own breakout.
Technical analyst Rekt Capital noted that ETH’s market dominance had dipped to its September 2019 low of 7% on April 22, but successfully bounced from that level to climb back above 7.5% the following day.
Squeeze and Upgrade Fueling the Rally
Fundamentally, ETH may also be benefiting from a short squeeze in an oversold market. According to 10x Research’s Markus Thielen, Ethereum was technically oversold on both the daily and weekly charts, creating fertile ground for a sharp recovery.
“It hasn’t taken much to drive Ethereum higher,” Thielen said.
“A heavily shorted market is now experiencing a squeeze, and the upcoming upgrade moving to mainnet adds a fundamental catalyst.”
The next major Ethereum network upgrade is expected to further enhance scalability and efficiency, which could fuel renewed developer and investor confidence in the platform.
Final Thoughts: A Turning Point for Ethereum?
Ethereum’s surge comes at a pivotal time. The asset had been losing ground to Bitcoin and newer Layer 1s, with concerns about scalability, high fees, and competition mounting. However, its ability to hold key support levels, rebound strongly, and regain market share may suggest that ETH’s long-term bullish thesis remains intact.
Whether this rally marks the start of a sustained climb or just a relief bounce in a volatile market remains to be seen — but for now, Ethereum is back in the spotlight, and the crypto community is watching closely.
