Ethereum Bottom Is In? Master Kenobi Predicts Massive Rally

Ethereum’s price has shown signs of recovery after surpassing the $2,000 mark, with analysts suggesting a potential rally. Some experts believe the bottom is already in, while others caution that negative market sentiment could slow Ethereum’s growth.

Ethereum Price Shows Signs of Recovery

Following the drop below $2,000 in March earlier, Ethereum has bounced back. In the last 24 hours, the cryptocurrency is up 3.52%, while it is up 6.92% in the last 7 days, per Coingecko. For now, Ethereum still holds the title as the second largest cryptocurrency with a market cap of about $242 billion.

Several analysts predict further growth for Ethereum. Crypto analyst Master Kenobi pointed out a pattern similar to the price movements of 2020, which led to Ethereum reaching an all-time high. He stated that a comparable price formation has emerged in 2025, potentially signaling another rally.

“An ABCDE pattern of similar length ended with a sharp panic-driven drop exactly five years later,” Master Kenobi explained. 

He also pointed to a hidden bullish divergence, indicating that selling pressure on Ethereum might be losing strength.

Whale Activity Signals Confidence in Ethereum

According to Lookonchain on-chain data, three large investors withdrew 14,217 ETH, which is around $29 million and deposited it in Aave. At the same time, these investors borrowed 12 million USDT and onwards moved them to the exchanges to presumably purchase more tokens.

ETH is back above $2,000, and whales are returning to $ETH!

10 hours ago, 3 whales withdrew 14,217 $ETH($29M) from #Binance and deposited it into #Aave.

They then borrowed 12M $USDT from #Aave and transferred it to exchanges—likely to buy more $ETH.

Address:… pic.twitter.com/Pzf4URzx5G

— Lookonchain (@lookonchain) March 20, 2025

Whale activity is often viewed as a sign of confidence in a cryptocurrency’s future price movement. Large investors making strategic moves indicate a belief in Ethereum’s long-term growth. This could further fuel speculation of an upcoming rally.

Market Factors That Could Influence Ethereum’s Price

Ethereum is facing challenges even as there are signs of a recovery. Recently, Standard Chartered lowered its 2025 price forecast from $10,000 to $4,000, dashing hopes.

Also, outflows of $29 billion from Ethereum’s decentralized finance (DeFi) took place during the last month. Some analysts believe the Pectra will take ETH higher to $5,000 after the Pectra upgrade, but there is also ground for its value to drop down to $1,600.

Macroeconomic Conditions and Their Effect on Ethereum

The broader crypto market recovered after the Federal Open Market Committee (FOMC) meeting which passed without interest rate changes. The price of cryptocurrency Ethereum had recently increased by 7% but the price increase is still tied to macroeconomic factors as demonstrated by this decision.

Additionally, discussions about blockchain improvements have been held by Ethereum co-founder Vitalik Buterin and Tron founder Justin Sun. Their imprint could impact the way investor sentiment and the direction of the markets proceed in the months to come.

Some analysts have noticed, in Ethereum’s current price movement, that a larger rally could be on the way.