Some market watchers still believe a move toward $2,000 could be nothing more than a bull trap before Ethereum experiences one last decline.
Pseudonymous crypto analyst NoName believes Ethereum has entered the price range where previous bear markets have historically found their bottom. According to the trader, a sequence of four consecutive lower highs suggests the prolonged downtrend may finally be ending.
Despite the prevailing bearish sentiment, NoName has continued accumulating ETH during the downturn, maintaining a long term price target of $7,000. The analyst argues that the same market psychology that fuelled enthusiasm when Ethereum traded near $4,900 is now driving excessive pessimism below $2,000, even though the network itself has seen no fundamental deterioration.
Analyst Identifies Historical Bottom Zone
In a post published on Friday, NoName highlighted Ethereum’s steady decline through four lower peaks, beginning at $4,957, followed by $3,400, then $2,460, and most recently $1,950. The trader described this as a classic bearish structure, noting that the pattern has pushed ETH into the $1,300 to $1,900 range, which has historically served as a market floor.
Rather than relying solely on technical analysis, NoName emphasised investor psychology. The analyst pointed out that Ethereum was widely celebrated at nearly $5,000, yet many now dismiss it as a failed project below $2,000 despite little changing fundamentally. According to NoName, such extreme pessimism often appears near major market bottoms, although any recovery is likely to be gradual and volatile.
Additional bullish indicators emerged the same day. Analyst Ali Martinez highlighted a positive crossover between Ethereum’s MVRV ratio and its 160 day moving average, a signal that has preceded several significant recoveries by indicating the end of distribution phases.
Meanwhile, Arab Chain reported that Ethereum’s 30 day average funding rate on Binance climbed to approximately 0.00339, its highest level in six months, while ETH traded around $1,920. The increase points to improving market sentiment, although funding rates remain below levels that have previously signalled overheated conditions.
At the time of writing, CoinGecko data showed Ethereum trading just under $1,900. The cryptocurrency has gained nearly 12% over the past month but remains about 62% below its all time high of $4,946 reached last August. After retreating from a seven week high near $1,950 earlier in the week, ETH must reclaim the $2,000 level to strengthen bullish momentum.
Not All Analysts Agree
CryptoQuant offered a more cautious assessment on Thursday. While Ethereum was trading roughly 17% below its realised price, the analytics platform noted that only two of its five historical bottom indicators had reached extreme levels. According to the firm, a full capitulation event has yet to occur.
Even so, large investors have continued accumulating ETH. Blockchain tracker Lookonchain identified a wallet that acquired 27,000 ETH valued at approximately $52 million through Galaxy Digital’s OTC desk. Meanwhile, BitMEX co founder Arthur Hayes purchased another 644 ETH, increasing his total acquisitions over the previous eight days to 3,270 ETH.
Institutional demand has also remained strong. Spot Ethereum ETFs have attracted more than $408 million in inflows this month, while prediction market participants on Kalshi currently expect ETH to reach around $3,200 before the end of the year.
However, not every analyst shares NoName’s outlook. Market analyst Nonzee expects Ethereum to rally toward $2,000, or even $2,200 if Bitcoin climbs to $70,000, but believes that move would represent a bull trap rather than the start of a sustained breakout. The analyst still expects ETH to fall into the $900 to $1,300 range before beginning a longer term recovery. Even so, Nonzee’s ultimate price target also stands at $7,000.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
