Is This The Ethereum Price Bottom? Key Metric Screams ‘Buy!’ as Ethereum Capitulation Nears End!

The Ethereum price may be nearing the end of the capitulation, according to famous crypto analyst Ali Martinez. In a recent X post, Martinez highlighted that Ethereum’s Entity-Adjusted Dormancy Flow has dropped below one million. This metric has been linked to Ethereum bottoms in the past. “This historically indicates a macro bottom zone, meaning $ETH might be undervalued and long-term holders are less inclined to sell,” Martinez explained.

Dormancy Flow Signals Recovery Potential

The Entity-Adjusted Dormancy Flow compares Ethereum’s market cap to the dormancy value, adjusted for unique entities rather than raw addresses. The analyst noted that this metric shows low sentiment and possible accumulation by “smart money”. He added, “Capitulation may have occurred, smart money might be accumulating.” This Ethereum analysis has sparked cautious optimism among investors, as similar patterns have led to recovery in the past. 

#Ethereum Entity-Adjusted Dormancy Flow just dropped below 1 million. This historically indicates a macro bottom zone, meaning $ETH might be undervalued and long-term holders are less inclined to sell. It also suggests:

• Sentiment is low
• Capitulation may have occurred
•… pic.twitter.com/8mFc3Qdxoy

— Ali (@ali_charts) April 11, 2025

ETH’s Struggles and Signs of Hope

Ethereum’s price has dropped over 55% in the past year and is currently trading around $1,557. Despite this prolonged decline, analysts are finally beginning to see signs of an Ethereum price bottom. CryptoQuant collaborator theKriptolik pointed out that ETH has fallen below its Actual Price, a metric showing the average acquisition cost across the blockchain. Such drops in prices point to the Ethereum capitulation phase. However, they also signal strategic accumulation opportunities for long-term holders. 

Meanwhile, Martinez issued a warning that ETH could dip as low as $1,200 if selling pressure persists. However, another analyst, NotWojak, suggested that ETH might be on the verge of a breakout. He stated that this breakout may take ETH up to $1,835. With Ethereum’s on-chain data suggesting possible recovery, analysts are divided on its short-term growth path. As Martinez aptly put it, “Sentiment is low, but smart money might be accumulating.” With that in mind, let’s take a look at the Ethereum price action ourselves and try to form price predictions of our own. 

Ethereum Price Analysis: ETH Approaches $1,600 Again

Ethereum commenced trading yesterday at $1,520. For the rest of the day, it continued to display horizontal range-bound behavior. A slight uptrend formed early in the day with a golden cross on the MACD around 1:00 UTC. This took Ethereum on a slow uptrend, all the way up to $1,577. However, with its advances towards the resistance, the RSI would quilt react by venturing close to the overbought zone, followed by a trend reversal. A slow downtrend would follow, and ETH would again try to ascend. This continued for the entire day. At 17:40 UTC, Ethereum tested the $1,588 resistance. 

Chart 1: published on TradingView, April 12, 2025 

With the RSI now overbought, a downtrend ensued, but Ethereum was able to establish a higher support at $1,546. Ethereum went on to test this support a few times for the rest of the day. However, as of the latest update, Ethereum has formed an uptrend within the range, looking for an upward breakout. 

ETH Price Prediction: Can ETH Sustain the Upward Breakout?

It is worth noting that the RSI reacts quickly to any upward pressure, which makes it difficult for the Ethereum price to break out. However, if the uptrend ensues and Ethereum can break the resistance, we may see a trading range near the resistance level. If buyers support further movement, a slow uptrend with some corrections could be the next play. If the bears take control, Ethereum will try to look for a support level nearby.