## A Bullish Outlook for Ethereum: Insights from Crypto Trader Ali Martinez
Crypto trader Ali Martinez has presented an optimistic perspective for Ethereum, especially if it dips below the $2,500 mark amidst mixed signals. The digital asset market has been experiencing a prolonged period of low sentiment and declining altcoin prices. Ethereum recently fell below the $3,000 threshold, with increased selling pressure pushing retail traders to the sidelines. However, in the past 24 hours, significant ETH accumulations have been observed, along with encouraging activity in the altcoin space.
## Will ETH Hit $4K?
Currently, Ethereum is trading at $2,739, reflecting a 1% increase over the last 24 hours and showing some recovery in weekly performance. The asset has faced considerable challenges, with major positions being liquidated over the past two weeks due to a significant market correction. This sell-off has reduced its market cap to $330 billion, accompanied by a similar drop in trading volumes. Expert trader Ali Martinez shared on X that the current conditions could lead to a price movement within a certain range, suggesting a potential decline to $2,300 followed by a rebound. If the price drop intensifies amid recovering factors, there may be a pathway toward the coveted $4,000 mark. ETH traders are eager to revisit this level, which hasn’t been seen in months, potentially setting the stage for a bullish price action. “In the best-case scenario, #Ethereum $ETH is range-bound, meaning it could test $2,300 support before rebounding toward $4,000. However, in the worst-case scenario, this could be shaping up as a double-top pattern.”
A rise to $4,000 could be on the horizon if the broader market recovery supports decentralized finance (DeFi). Many analysts believe that Ethereum’s DeFi volumes and institutional inflows could significantly influence the leading altcoin’s trajectory. Recently, a surge in institutional interest has contributed to an uptick in ETH prices as whales have resumed trading. In the last 72 hours, these large investors have acquired over 400,000 ETH in an effort to reposition themselves ahead of anticipated gains.
## Wider Altcoins Could Swing Upwards
Recent hourly data indicates a slight momentum shift in altcoins, bolstered by positive on-chain metrics. The gains seen in Ethereum have prompted traders to explore other assets, resulting in a 1% increase in the total market cap. XRP has risen by 4%, while Solana and Cardano have experienced gains of 2.5% and 4.6%, respectively, during the same period. Although the notion of an altcoin season may seem ambitious, a recovery in Bitcoin’s price could further benefit these assets. Meme coins have also made attempts at a modest recovery, although many leading assets remain far from their December 2024 levels. DOGE and SHIB recorded gains of 0.5% and 0.6%, respectively.
